defaulting on an unsecured capital one loan

[ggirl]

I have been a Capitol One credit card holder in good standing for a number of years. I also had one other credit card. Between the two, I had run up a big debt that was becoming difficult to pay. Capitol One kept sending me applications for a personal loan through emails and regular mail. Well I finally caved in and applied online. I wasn't working at the time, but listed my last place of employment and salary on the online application. They must not check, because I was instantly sent a check for $10,000.00. I paid off the $6000.00 I owed on the 2 credit cards and used the other $4000.00 to make payments on the loan until it ran out. The problem is I have been unable to find a job. I know I am to blame for my mess and I'm so angry with myself for getting into this position, but now that I realize this, it's too late. I am single, 52 and have a multitude of health problems that also interfere with my finding a decent paying job. So I guess my question is: If I just stop paying off this loan, aside from getting bad credit, what exactly, realistically can they do to me? I own nothing, so that's not an issue. Please help.

 

[presutin]

They will probably send your balance to a collections agency who in turn will try to recover those funds at any price on top of your credit being damaged for a very long time (which can hurt your chances of getting a good job.) Try to see if you can negotiate with them an installment plan with a much lower monthly payment so you can avoid those problems. Good Luck!

 

[ggirl]

When you say "recover funds at any price", what exactly does that mean? Will they sue me, even if I have no material possessions? I honestly will never be able to pay this off and want to know what to expect. Please reply.

Thank you

 

[presutin]

That means that collection agencies will do whatever it takes to recover the money. If you feel that you will never be able to pay that debt, you should consult with an attorney in your hometown to see what is be the best way to cancel this debt forever. Check with the American Bar Association for pro bono attorneys in your area. Good Luck!