Unpaid debts don’t go away; instead, they can lead to debt collections, lawsuits and wage garnishment. But if you take action to deal with your delinquent debt, you can protect your budget — and your credit score — from the worst repercussions.
If you have many delinquent debts, look into debt relief options. Creating a plan to contend with debt can help safeguard long-term goals such as retirement.
One warning: No matter how much you owe, avoid resorting to high-cost borrowing such as a car title loan or payday loan. It can lead to a spiral of debt that’s hard to escape.
Learn more: Use the timeline below to understand each stage of what happens when a debt becomes delinquent. Click on any stage along the way to learn more about what happens behind the scenes and what you can do to remedy the situation.