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Can Credit Card Debt Lead to A Wage Garnishment?

June 28, 2019

Everyday life can be unbelievably expensive. If you have too much month left at the end of your paycheck, you may need to rely on credit cards to make ends meet. Unfortunately, though, before you know it, credit card debt can become crippling.

The average American has more than $6,000 in bank-issued credit card debt. While about 40% of your neighbors can pay off their balance every month, 60% do not have enough money to vanquish their credit card debt. As you likely know, any wage garnishment is likely to make your financial situation worse. Can credit card debt lead to wage garnishment? The simple answer is yes.

What Is a Wage Garnishment?

When you owe money, your creditors expect you to repay it. Most charge interest. If you go into default, though, creditors have a few remedies. One way for a creditor to pursue payment is to file a lawsuit against you. If the creditor wins in court, a judge may allow for the garnishment of your wages. With a garnishment, your employer reserves part of your paycheck and sends it to the court to satisfy your outstanding debt.

How Do Garnishments Affect You?

Garnishments can have a few consequences. First, they may damage your credit score, making it more difficult for you to borrow money in the future. They also cause you to have less take-home pay. Accordingly, if you already struggle to pay your bills, a garnishment may be disastrous. Further, garnishments can be embarrassing. After all, who wants his or her employer to know about financial troubles?

While credit card companies may seek a wage garnishment, you likely have a few ways to prevent garnishment from happening. By taking a realistic accounting of your financial situation and considering bankruptcy protection, you likely decrease your chances of facing a wage garnishment over your outstanding credit card debt.