What happens if I miss a payment on a debt settlement?

If you miss a payment on a debt settlement in California, it may have serious consequences. Your creditor may decide to pursue legal action to try to collect the debt. They may sue you for the amount owed plus additional interest and court costs. Depending on the terms of the debt settlement agreement, your creditor may also be able to revoke the agreement, which would mean that you would be liable for the full amount of the original debt. In some cases, a missed payment on a debt settlement may cause your creditor to report the missed payment to the credit bureaus. This could lead to a decrease in your credit score, which would make it difficult to get loans and other forms of credit in the future. Fortunately, there are steps you can take to try to avoid missing payments on a debt settlement. You can set up automated reminders to help you remember due dates, or set aside money every month specifically for debt payments. You can also speak with your creditor and set up a payment plan that works for both of you. It is important to communicate with your creditor if you are having trouble meeting payments, as they may be able to help you find a solution.

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What happens if I miss a payment on a debt settlement?

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