3 Easy Tips to Stop Wage Garnishment

stop wage garnishmentA wage garnishment because of unpaid bills can be devastating!

Here are 3 easy tips on how to stop wage garnishment:

If you are having a difficult time keeping up with your credit card accounts or other unsecured debt, your not alone!

Over the recent years, hundreds of thousands of people just like you have had to take on more credit in order to survive the downturn in our economy or other financial setbacks such as:

  • Loss of employment
  • Divorce
  • Illness
  • Death of a spouse
  • Disability
  • Too little income from Social Security, etc.

Once you miss a payment to one of your creditors, they will start calling and sending late notices.

You can download FREE INFORMATION ON HOW TO STOP COLLECTION CALLS by clicking on the button below:

STOP Collection Calls Free Sample Letter



The biggest mistake I see people make that can lead to a wage garnishment is to ignore the calls and/or letters.

Obviously, if you miss a payment, it is going to trigger a signal to alert the creditor.  Creditors don't necessarily want you to pay off your entire account (they make their money on interest and fees!), but they demand a monthly payment...or they get real upset!

Your account will usually be sent to an internal collections department within the company when it is about 90 days over due.  The collection departments job is to save the account...get you to start paying again.

They may offer you a HARDSHIP PLAN, but BE CAREFUL! 

Most hardship plans will offer you a small reduction in your payment and perhaps your interest rate for maybe, 6-12 months.  Sometimes, they may offer to waive the "late charges and/or over-the-limit" fees they may have tacked on to the balance. However, the problem with a hardship plan is that, while it may stop the calls, you are not really paying down the debt.

Also, once the time period of the hardship plan expires, you are right back to making the normal payments!


If a creditor cannot get you to start making payments again, they may decide to send the account to a collection agency. The calls and letters will start again as you will no longer be dealing with the original creditor anymore.

Just as you did before, you will need to send a letter to the collection agency to stop the calls.

If the collection agency cannot get you to pay, they may decide to file a complaint with your local courthouse stating that you owe the debt. The court will prepare a SUMMONS, and you will most likely get a know at the door one evening and someone (may be a police officer), will SERVE YOU THE SUMMONS.

Sounds intimidating...and it is! Yet, the worst thing you can do (and a lot of people make this mistake) is to ignore the summons!

The summons will state who you owe and how much, and it will say that you have 20-30 days (depending on your state's laws) to give an ANSWER. An answer is a legal term that you would file if you feel that you do not owe the debt.

In most states, you will have to pay a filing fee and it has to be legally correct in order to file, so you may need to hire an attorney.

Just because you received a summons does not mean that you are going to be sued, or go to jail, or have all of your belongings confiscated...you still have rights!

But what it DOES mean is that the creditor is SERIOUS about collecting the debt.

If you are employed, the creditor could be awarded 25% of your net take home pay until 100% of the debt is repaid with interest (9% in Oregon...each state varies a little).

Call the collection company or attorney representing the collection company and try to work out a SETTLEMENT or a repayment plan called a "stipulated agreement".

If you don't, the creditor will be awarded a judgment by default (called a default judgment), and now they can pursue legal avenues including wage garnishment!


I know, you most likely do not have a lot of money in savings, but let's say the total debt is $2,000 including interest, attorney fees and court costs, they may be will to take 70%-80% to settle the debt.

If you had contacted the creditor before the account went to collections and then the legal process, you may have been able to settle for 50% or less!

We have been helping people get out of debt for many years and would like to help you.

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Tags: debt collection, wage garnishment, credit card debt, credit card hardship plans, how to prevent wage garnishment, wage garnishment in oregon, debt settlement in oregon, collector

Beware of Credit Card Hardship Plans

beware of credit card hardship plansIf you are late or behind on your credit card payments, you may receive a call from your creditors offering you a Hardship Plans

Are Hardship Plans a Good Idea?

If your hardship is short and temporary, a hardship plan can be just the help you need to get by.  However, never forget that the goal of the credit card industry is to make money...lots of money!

The collections agent on the other end of the phone line doesn't care:                  

  • about you
  • about your family
  • if you lost your job
  • have had major illness

They make a commission when you agree to make payments.  So BEWARE when they offer a hardship plan.

If it sounds too good to be true, it probably is!

A typical hardship plan will usually waive or reduce interest rates and fees for 6 - 12 months.  The pitch is that this will give you a little breathing room and you can renegotiate your payments or plan later.

  • They will want you to set up automatic deductions from your bank account or send them 6 months of post dated checks. 
  • By giving them your banking information, and authorization to withdraw funds, you will have a difficult if not impossible time getting them to stop the automatic payments once the 6 months has passed. 
  • Unfortunately, when they take these future payments, they are generally much higher than the amount of the hardship payment.

Let's take a look at what your Hardship Plan might look like.

  • Your balance is $5000
  • You current minimum monthly payment is $150
  • They offer you payments of $100/month for 6 months at a reduced rate of 6% and no fees.

After six months:

  • you've paid $600
  • $150 went to interest 
  • $450 went to reducing the principle 
  • your balance is $4550

That sounds like a pretty good plan.  However, what they didn't bring to your attention, and what you failed to read in the fine print is that all of the interest and fees that you were not paying during that 6 months will now be charged and added into the balance!

WHAT?  That makes no sense right.  WRONG!  At the end of most Hardship Plans, you end up owing the same if not more that what you started with. The only thing the Hardship Plan did was allow you to remain current for six months of temporary hardship due to the reduced payment.   

When you call to renegotiate your payment and interest rate, more often than not, you'll be back to high interest rates and fees which means it will take you several years and thousands of dollars in interest to pay off your card.

Consider a Debt Consolidation Program

If your hardship is not temporary, you may want to consider a Debt Consolidation program instead.  Through a Debt Consolidation program, your interest rate will be drastically reduced for the life of the debt or as long as you remain in the program. (whichever comes first).  Not only that, if you have already fallen behind, your creditors will "Re-Age" your accounts to bring them back to current status. 

Debt Consolidation programs will help you to eliminate your debt in a short amount of time while saving you thousands of dollars interest.  For more information, please feel free to give us a call or click on the link below.  One of or Debt Solutions Specialists can help you determine which option is best for your situation. 

beware of credit card hardship plans

Tags: debt consolidation, credit card hardship plans, debt elimination