Start My Answer
loading...

How to Walk Away from Credit Card Debt

Chloe Meltzer | December 02, 2022

Chloe-Meltzer
Legal Expert
Chloe Meltzer, MA

Chloe Meltzer is an experienced content writer specializing in legal content creation. She holds a degree in English Literature from Arizona State University, complemented by a Master’s in Marketing from California Polytechnic State University-San Luis Obispo.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Not sure what to do about all your credit card debt? Thinking about just walking away? Find out how to walk about from credit card debt and if it's the right decision for you.

Credit card debt can feel like it is swallowing you whole, but if you do not pay it, then your credit score will take a big hit. If you do not care about owning a home, obtaining a rental lease, or being able to get a new credit card, then you might not care about your credit score.

However most people want to be able to have credit in their lifetime, so walking away from credit card debt is not always simple.

Respond to a debt collection lawsuit in 15 minutes with SoloSuit.

How walking away from debt usually goes

If you have decided to “walk away” from your credit card debt then you may have stopped making payments. After 30 days you should expect a letter or a call from your creditor. This will explain that you have missed a payment. At this point, it will most likely be reported to one or more of the credit bureaus.

After 60 days if you haven't paid, the creditors will most likely begin to call more. You may notice late fees, and penalty interest being added to your bill. You will notice your credit score begin to drop at this point.

After 90 days you will be declared in “default”. You will see your score continue to drop, and the account may be sold to a debt collection agency.

What happens when your debt goes to a collection agency

Once your debt has reached a collection agency the agency will report it as a collection account to the credit bureaus. You will see your credit score dramatically drop, and they will begin to pursue you aggressively. It is good to be aware that the Fair Debt Collection Practices Act limits collection agency practices, but most often debt collectors will still push you to pay.

If you continue to walk away from your debt you may be served with a lawsuit. Collection agencies file millions of lawsuits every year and sometimes lose the required paperwork. This can be a good defense to a debt collection lawsuit.

If you do not respond to the lawsuit then a default judgment will be placed against you. They may be able to garnish your wages, place a lien against your property, or take money directly from your bank account.

Protect your wages from debt collectors by filing a response with SoloSuit.

It is also good to note that collection agencies typically buy debt for an average of 4 cents for every dollar of your debt. Because of this, many agencies are willing to settle your debt for less than you owe.

How to walk away from credit card debt

The best way to walk away is not to walk away. Despite this, if you choose to you will need to avoid multiple reminders from your creditors before it goes to collections. Since credit card debt is one of the most common forms of debt in the United States, you might find it easy to walk away, but this is not always the case. After 90 days you most likely will not be able to use your credit card, and debt collection will get more serious.

Your credit score will dramatically decrease. You may no longer be able to get a loan, and even if you do, you will have an incredibly high-interest rate putting you deeper into debt.

Once the collection agency begins to pursue you, you will be sued. If a judgment is placed against you then your wages could be garnished. Your only true option lies in hoping that the debt collector makes mistakes.

Make the right defense the right way with SoloSuit.

More options for dealing with your credit card debt

Because many people walk away from debt simply by ignoring the calls and letters, it is usually by accident. Most people want to avoid dealing with debt if they cannot pay them. Debt collectors assume you will never answer them, but you can choose to fight the lawsuit instead, and possibly have it dropped.

Debt collectors often purchase multiple debts at a time and at a lower price (as mentioned). If you happen to ask for proof that you owe the debt and they cannot provide that, the lawsuit will be dropped. The only way to force you to pay the debt, or obtain a judgment, is to prove that you are responsible for it. Should this paperwork be lost, they have no proof.

Another way to somewhat walk away from the debt is to settle it. This is by offering a lump sum of money in exchange to have the debt wiped clean (also known as satisfied). It is not the perfect option, but it is better than allowing your credit to be destroyed.

What is SoloSuit?

SoloSuit makes it easy to respond to a debt collection lawsuit.

How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.

Respond with SoloSuit

"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James

Get Started

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit: A Student Solution To Give Utah Debtors A Fighting Chance

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Get debt relief in your state

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

Other wage garnishment resources

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

Other debt settlement resources

Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

How to repair and improve your credit score

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt.

How to resolve student loan debt

Struggling with student debt? SoloSuit’s got you covered. Below are resources on handling student loan debt.

Civil law legal definitions

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Get answers to these FAQs on debt collection

How-to debt guides

Learn more with these additional debt resources

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.


"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather



Get Started


Contents