By: Robert Nahoum
Inflation is on the rise, and it’s having a significant impact on consumers’ wallets. As prices for goods and services go up, people have less money to spare, which can lead to credit card defaults, which can lead to debt collection which can lead to debt collection lawsuit.
If you’re struggling to make your credit card payments, you’re not alone. The number of credit card defaults is expected to increase in 2023, and New York State is no exception.
In this post, I’ll discuss how inflation can lead to credit card defaults, and what you can do to protect yourself.
How Inflation Can Lead to Credit Card Defaults
There are a few ways that inflation can lead to credit card defaults. First, as prices go up, people have less money to spare. This means that they may have to use their credit cards more to cover basic expenses, such as food and gas.
Second, inflation can also lead to higher interest rates on credit cards. This means that people will have to pay more money in interest each month, which can make it even harder to make their payments.
Finally, inflation can also lead to job losses. If you lose your job, you may not be able to make your credit card payments.
What You Can Do to Protect Yourself
If you’re concerned about inflation and credit card defaults, there are a few things you can do to protect yourself:
- Track your spending. This will help you see where your money is going and make sure you’re not overspending.
- Create a budget. This will help you track your income and expenses, and make sure you’re not spending more than you can afford.
- Pay down your debt. This will reduce your monthly payments and make it easier to make your payments on time.
- Get help if you need it. If you’re struggling to make your payments, there are resources available to help you. You can contact your credit card company, a credit counseling agency, or a consumer protection attorney.
Debt Collection and Debt Collection Lawsuits in New York State
If you default on your credit card payments, your creditor may send your account to a debt collector. Debt collectors are allowed to contact you by phone, mail, and email to collect your debt. However, they are not allowed to harass you or threaten you.
If you don’t pay your debt, the debt collector may sue you in court. If you are sued, you have the right to defend yourself. You can also try to negotiate a settlement with the creditor.
Inflation can have a significant impact on consumers’ finances, and it can lead to credit card defaults. If you’re struggling to make your payments, there are steps you can take to protect yourself. You can track your spending, create a budget, pay down your debt, and get help if you need it.
If you’re sued by a debt collector, you have the right to defend yourself. You can also try to negotiate a settlement.
If you’re concerned about inflation and credit card defaults, I encourage you to speak with a debt and credit attorney. They can help you understand your rights and options, and they can represent you in court if necessary.
If you need help settling or defending a debt, stopping harassing debt collectors or suing a debt collector, contact us today to see what we can do for you.
The Law Offices of Robert J. Nahoum, P.C