Can You Clear Credit Card Debt Without Paying?
Credit card debts are unsecured debts. The debts are not attached to any asset, which means your credit card provider cannot impound your assets to recover the debt. Here, we will look at how to clear credit card debt without paying. But is it possible? Well, you can utilize some gaps in the law to clear your credit debt without paying. However, the process is long and tedious, particularly when you do it on your own. But you can simplify the process by using the automated DoNotPay platform.
What Are Credit Card Providers, and Why Are They Calling Me?
A credit card provider is a bank or a credit union that extends credit to qualifying members of the public. If you are a cardholder, and you have recently started receiving calls from your card provider, chances are you have an overdue debt. The provider can be calling to
- Remind you to clear the outstanding debt
- Inform you that your debt is about to be transferred to a debt collector
- Discuss how to manage the payments
- Or simply harass you into paying the outstanding debt
While the calls can be annoying as some set you on automatic calls, you should never ignore them. Ignoring the calls could land you in more trouble. Your credit card provider can
- Take legal actions against you, such as obtaining a County Court Judgement against you
- Downgrading your credit score
- Or petitioning your bankruptcy
You could also receive calls from a third party such as debt collectors who buy off debts at a discount and follow the debtors.
|Credit Card Provider Contact Details||If you are not sure of the calling numbers of your credit card provider, you can confirm them from your provider's official site. You could also check the contact details from the terms of your card. Having your provider's contacts handy could help you avoid falling prey to scammers.|
|Is The Caller Legitimate?||As mentioned earlier, you could also receive calls from debt collectors who manage credit for other organizations. If the call is not coming from your credit card provider, it is important to confirm the legitimacy of the debt collector before engaging with them.|
Just knowing about credit card providers and debt collectors does not really give you enough information for how to clear your credit card debt without paying.
What Happens If I Don't Pay My Credit Card Debt?
Before discussing the consequences of not paying your credit card debt, it is important to understand credit card debt. A credit card debt is an unsecured and non-priority debt. Unsecured debt means your credit card provider may not confiscate your assets to offset the debt without the permission of the court. Non-priority debt means you may not prioritize clearing the debt as you would your car loan or mortgage. Being a non-priority debt means you are likely to forget servicing your credit card debt.
Although the debt is unsecured, it does not mean you can easily write it off. Failure to pay your credit card debt:
- Can land you in the County Court to answer legal charges
- Can affect your credit rating
- Can influence your bankruptcy declaration
- In some cases, can lead to loss of property if a County Court Judgement approves confiscation of your property
To avoid the above consequences, you should respond appropriately to the first contact from your credit card provider or debt collector. Responding appropriately means
- Requesting a written communication during your first call
- Once you receive written communication from your card provider, follow it with a debt validation letter
- You should respond to the written communication within 30 days
- A request for validation of the date provides breathing space since the card provider cannot continue calling after a validation request.
Has the Credit Card Provider Violated My Rights?
A credit card debt is unsecured, which means the provider cannot impound your assets to offset the debt without seeking permission from the court. Seizing your assets could, therefore, be a violation of your rights. Your rights could also be violated if the card provider shows up at your workplace to demand payment of the debt.
How to Clear Credit Card Debt Without Paying
There are several debt-payment assistance methods available to credit card debtors. You can utilize any of the available options to clear your credit card debt without paying. One of the options is debt relief orders (DRO). You must meet certain eligibility criteria to be eligible for a DRO. If you secure a debt relief order, your credit card provider is restricted from harassing you through phone calls. The debt relief orders also write off the outstanding debt after 12 months.
Another option could be negotiating a payment plan with your credit card provider. If you come to an agreement, the credit card provider can waive the outstanding interest. You can also transfer the outstanding debt into another credit card that charges less interest.
How to Clear a Credit Card Debt Without Paying With DoNotPay
The process of clearing a credit card debt without paying is long and tedious. It involves a lot of documentation and time sacrifice if you are doing it on your own. However, you can simplify the process by using the automated DoNotPay platform. The platform simplifies the process into just three steps, as shown below.
- Search "debt collection" on DoNotPay.
- Answer a series of questions about the debt collectors, including when you were contacted and how you were contacted, so we can determine if they have violated any debt collection laws.
- Decide which course of action you want to take based on our guidance, such as filing a debt verification request, demanding for the collectors to stop contacting you, or reporting them to a professional trade association.