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

If you miss a payment on a debt settlement in Washington, you may be subject to various penalties, such as late fees or increased interest rates. You may be given a period of time to make the missed payment, during which time any interest or late fees will continue to accrue, which could make it harder to catch up on the payments. In addition, the creditor may report the missed payment to the credit bureaus, negatively impacting your credit score. If you continue to miss payments on your debt settlement, the creditor may take legal action, such as filing a lawsuit against you. In Washington, debt collection companies must abide by the Fair Debt Collection Practices Act, which includes regulations on how they can contact you regarding the debt. If the creditor obtains a judgment against you, they could then garnish your wages to obtain the payment. It is important to keep track of your payments and make sure you do not miss any. If you know that you will have a hard time making the payment, you should contact the creditor as soon as possible and see if you can work out an arrangement. You may be able to negotiate a new payment plan, or you may be able to negotiate a lump sum payment to resolve the debt.

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

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