The short answer? No, you can’t go to jail for credit card debt. I wondered the same thing when I was younger and just learning about credit cards. I even looked up if debtors’ prisons were still a thing. (Spoiler: They’re not!)
However, that doesn’t mean you’re off the hook if you don’t pay your credit card debt. While debt collectors can’t have you arrested — and if one says they can, they’re most likely trying to scam you — there are other ways they can get their money back.
What Debt Collectors Can and Can’t Do
First and foremost, debt collectors cannot have you arrested for unpaid credit card debt. The Fair Debt Collection Practices Act makes it illegal for debt collectors to threaten you with arrest or have you arrested for unpaid debt. However, if you’re sued and don’t comply with a court order, you can be arrested.
Here’s a breakdown of what debt collectors can and can’t do.
Debt Collectors Can:
— Call you, send letters and emails, text you, and private message you on social media
— Sue you to recover unpaid debt
— Access your bank account (after a court judgment)
— Garnish your wages (after a court judgment)
Debt Collectors Can’t:
— Contact you any time or place
— Harass you
— Lie to you
If a debt collector does threaten you with arrest, it is considered unlawful and you can file a complaint with the Consumer Financial Protection Bureau or Federal Trade Commission. Just make sure you document everything before doing so.
[Read: How to Negotiate With Debt Collectors]
The History of Debtors’ Prisons
If you were sent to debtor’s prison, you would be kept there until you repaid your debt or the creditor decided to let you go. These debtors were often held in the same prison as criminals, just in different sections. And while your average criminal knew how long they were going to be in prison, the average debtor did not.
Also, being imprisoned wasn’t free. Many debtors lacked food, water and heat. As a result, jailers would provide essentials … for a fee, of course. This often meant the costs associated with being sent to prison were higher than the actual debt someone was sent to prison for. This created a vicious cycle, allowing debtors to be imprisoned for years.
It’s been argued the reason debtors’ prisons fell out of favor was not just because it was considered cruel and unjust punishment, but because it “contradicted modern capitalism.” By locking up debtors for unpaid loans, it leaves the creditor high and dry. Can’t repay your debts if you’re rotting in jail, after all.
So, in 1833, Congress abolished debtors’ prisons. However, state judges were still jailing people for failing to pay their debts, which led to the creation of the FDCPA in 1977.
[READ: Easy Ways to Pay Off Debt.]
How to Get Credit Card Debt Under Control
Even without debtors’ prisons to contend with, getting credit card debt under control can still be overwhelming. Here are a few methods you can use to help alleviate some of that anxiety.
— Create a debt management plan. A credit counselor can help you create a debt management plan. When you work with a credit counseling agency, you make monthly payments to it, and the agency then distributes your payment to the creditors you owe. You’ll benefit from reduced or waived fees, fewer collection calls and more. The National Foundation for Credit Counseling is a good place to start your search for a credit counselor.
— Prioritize high-interest debt. This is normally referred to as the debt avalanche method. If you use this strategy, you pay off your credit card balances from highest annual percentage rate to lowest APR. The downside is if the balance on your highest APR credit card is large, it’ll take some time to pay off that first credit card.
— Consolidate your debt. You can do this a number of ways, but options include applying for a balance transfer credit card and transferring multiple debts onto this one card. This is a bit more DIY, though, and will require some discipline. Another option is a debt consolidation loan. These loans combine multiple credit card balances into one installment loan.
Dealing with debt collectors is never fun. But hey, at least they can’t throw us in jail anymore.
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Can You Go to Jail for Credit Card Debt? originally appeared on usnews.com
