Monday, September 13, 2010

If you default on your credit card debt, an unsecured debt, why can the bank garnish your salary?

I thought a credit card was an ';unsecured'; debt, meaning they are loaning you money not based on your assets, but on their assumption (based on their research into your history) that you will pay it back.



If you don't pay it back, shouldn't it just be tough tuna for the bank? They took a chance and they lost. The debt was unsecured. Why can they then attach your wages?