What is credit card debt?

Credit card debt is the unpaid balance of money owed on a credit card. It is a type of consumer debt owed by individuals and businesses. Credit card debt can result from purchasing items with a credit card, taking cash advances from a credit card, and transferring or rolling over existing debts into a new credit card. In Florida, credit card debt is considered a type of unsecured debt, meaning that the creditor has no legal right to take possession of any property from a debtor to satisfy the debt. When someone fails to make payments on their credit card debt, they can face serious consequences. They will be assessed late fees, receive collection calls, see a decreased credit score, and may ultimately have their account sent to a collections agency. If they continue to ignore the debt, they risk being sued by the credit card company or collection agency. The creditor can then obtain a judgment against them, which can result in wage garnishment, liens or a bank account levy. When dealing with credit card debt, it is important for individuals to understand their legal rights. Individuals may be able to negotiate with creditors to lower interest rates and payments, or even settle the debt for less than the full balance owed. For more serious cases, individuals can consult with a bankruptcy attorney to explore their legal options.

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What is credit card debt?

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