What is credit card debt?

Credit card debt is a type of debt that results when consumers use their credit card to purchase goods and services. It is a form of unsecured debt which means that it is not backed by any type of collateral, such as a car or home. Credit card debt is considered to be “revolving” debt, because the borrower can continually use their credit card to purchase items up to the credit limit set by the credit card company. The laws around credit card debt in North Carolina are largely the same as those found in most states throughout the U.S. The primary way that credit card debt is addressed and enforced in North Carolina is through the use of the Fair Debt Collection Practices Act (FDCPA) and the North Carolina Statutes Annotated Section 14-40. This set of laws outlines the rights and responsibilities of creditors and debtors. When it comes to credit card debt, creditors are expected to treat debtors fairly and transparently. This means providing debtors with adequate notice of their debt, providing information about any collection fees they may charge, and giving debtors a reasonable amount of time to pay off their debt. On the other hand, debtors are expected to pay creditors in a timely manner. Additionally, debtors should be proactive in managing their debt and contact their creditor to discuss payment arrangements if they foresee difficulty in repaying their debt. In short, credit card debt is a type of unsecured debt that consumers accumulate when they use their credit card to purchase goods and services. In North Carolina, the Fair Debt Collection Practices Act and the North Carolina Statutes Annotated Section 14-40 provide the primary set of laws that govern how creditors and debtors interact with each other. Creditors should treat debtors fairly and transparently, and debtors should be proactive in managing their debt by contacting their creditor if they foresee difficulty repaying their debt.

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