Do you get jailed over your credit card debts?
October 13, 2009 3:54am CST
A lot of people, me included have experienced or are still in debt. Credit card is usually the best option when you're low on cash. However there's always a time when you maxed all your cards and without you knowing, you're already in debt with the interest rates alone. The question is, will go you go jail if you will not pay your credit card debt?
13 Oct 09
I do not think somebody will get jailed for credit card debt. As far as I know, bad debtors to credit companies will just face a civil case if not a demand letter to pay their debt. Thus, many people tend to overspend without being afraid of going to jail. Those credit cards companies however share a database for bad debtors that will allow them to refuse any future application of the same person on different credit card agencies. My lecturer say that for those big banks, they will write-off all bad debts incurred for credit card users after two years. After that it will not be your debts anymore right? But maybe countries regulations may vary from one into another.
13 Oct 09
So far, yhong, I think I won't. Yes, you're right. Sometimes credit card is the best and convenient option when I'm in a lack of cash. But I seldom do it, because encashment will make interest rate and handling charge. And I just own one credit card and one cash card. It makes me know better about my bank card. And I usually pay by credit card as much as possible if it's available, and keep more cash, so that if it only accept cash, I can make it. Frankly speaking, I don't want to pay for interest rate and handling charge. And I think I use my credit card in acceptable way for myself.Anyway, I don't want to be controlled by it, but it's just one of my tools to make my life better.