Can you lose your house because of credit card debt?

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asked May 4, 2019 in Credit by janicegu18 (210 points)
Can you lose your house because of credit card debt?

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answered May 4, 2019 by Essmann (42,860 points)
Losing your home due to owed credit card debt is entirely possible but only if you own the home outright without a mortgage.

If you're paying a mortgage on the home then the bank would still own the home and the credit card company nor a debt collector could take that home from the bank.

However if you own the home outright and the debt collector or credit card company takes you to court and sues you in court then they could request a lien against your home and could take anything you own to be able to pay back the owed credit card debt.

However your credit card debt would have to be around $10,000.00 to more for them to consider taking you to court and possibly taking your home from you.

For small amounts of credit card debt it will usually be written off and then sold to a debt collector who will then harass you until you pay up.

If you cannot pay up then do not talk to them because after 7 years they can't force you to pay back the credit card debt.

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