Ignoring debt can negatively impact you.

Your debt may grow

Unpaid debt may grow with interest and late fees. Credit cards can charge high interest rates and late fees between $30 and $41 each month.

Your credit score may drop

Unpaid debt may lower your credit score. A single 30-day late payment could drop your credit score by 50 to 100 points.

Debt collectors may start contacting you

The creditor may send your bill to collections or sell your debt to a debt buyer. You may start receiving calls, emails, or texts to collect the debt. 

You may get sued

If a debt collector sues you and wins, it will get a judgment against you. A judgment allows the debt collector to:

• Take part of your wages,
• Freeze your bank account, and
• Put a lien on your house, if you own one.

Some of your property is automatically protected from collections. This includes at least 85% of your wages and Social Security benefits. $1,000 of the money in your checking or savings accounts is automatically protected until the court hears the post-judgment citation.

You may also protect other property, but you must tell the court you want to claim this protection. For example, you can protect up to $4,000 in your bank account.

👉 Learn more about what debt collectors can take when they have a judgment.

Tax debt

Tax debt can lead to the IRS taking money from your bank account or part of your wages. The IRS does not need to sue you to do this. However, it offers options to help you pay what you owe.

👉 Learn more about tax debt.

Child support and spousal support

Special rules apply to child support and spousal support debt.

👉 Learn more about child and spousal support debt.