Can credit cards Lien your house?

Ric: No, they cannot put a lien on your real estate. Interest rates on credit cards are high because the card issuers have no collateral when they lend you money; they can’t seize your real estate or any other assets.

What are the consequences of non payment of credit card?

If you don’t pay your credit card bill, you will have to pay late fees, increased interest charges and it can cause damage to your credit score. If you continue to miss payments, your card can be frozen, your debt could be sold to a collection agency and the collector of your debt could also sue you.

Can You Lose Your House if you have credit card debt?

That is when you might face the prospect of losing your home. But creditors rarely employ such drastic measures, in part because there is usually a mortgage attached to a home. Mortgages are secured debt, and the mortgage holder would have first rights if the home were foreclosed on to pay a debt.

What happens if I Lose my credit card?

Credit card debt is unsecured debt. In order to lose your home, several things would have to happen. First, you would have to be sued in court and lose. If that were to happen your creditors would receive a judgment against you ordering you to pay. If you could not pay, a card issuer could take further action to enforce the order.

What happens when you have a credit card lien on Your House?

Property liens resulting from a credit card judgment are common enough. Forcing sale of the property to get paid on a credit card debt is not. More typically the lien on the property gets paid, to whatever amount, when the home is sold or refinanced. Filing bankruptcy to eliminate credit card debt. People want to avoid bankruptcy.

What happens if you don’t pay your credit card debt?

If you still haven’t paid your debt, you will start receiving phone calls from the creditor’s in-house collection department. After a few months (usually 6 months), the non-payment of the debt will force the creditor to forward your debt to a debt collection agency. The debt collection agents will then phone you to pay the debt.