Default means not being able to fulfill an obligation, especially the monetary kind. When a person defaults on a credit account, it means they have been unable to repay as per their agreement. According to Dallas based bankruptcy law firm Recovery Law Group defaulting on a payment is usually the first step towards bankruptcy. This is so because unfortunately, defaulting adds up the interest as well as penalty on the already existing amount. Generally, people have a minimum of 2-3 credit cards. Simultaneous use of them results in a huge amount which needs to be paid every month to avoid it piling up. Defaulting causes people to struggle with their finances and from there, it is a slippery road towards bankruptcy.
Bankruptcy is not only quite dramatic but also has negative implications on your credit report. Finding credit after filing for bankruptcy or getting discharge is quite tough. To know about your options regarding bankruptcy, call 888-297-6023 to consult with the best bankruptcy attorneys.