Do Nothing

Doing nothing is simply that. It is ignoring your financial problems, creditor calls, bills and legal action against you.


  • If you do not own property or desire to own property in the future, if you have no need for credit, if you have no property that you want to protect, then doing nothing may be an option for you.
  • You avoid paying legal fees and doing paperwork


  • Most negative credit items can remain on your credit report for 7 years.
  • Bad credit can make it difficult to get a low interest vehicle loan and may even affect your ability to obtain certain jobs.
  • Getting a mortgage at a low interest rate will be highly unlikely with a low credit score.
  • Laws vary from state to state, but a judgment generally becomes a lien against any land or home in your name and sometimes allows the judgment-holder to take action against your personal property, including the garnishment of your wages.
  • Stress can be a result of past due bills and creditor calls. Do not ignore the effects that stress may be having on you and your family.

What to Avoid

  • Avoid allowing problems to get worse by doing nothing.
  • Avoid pretending you don’t need help. Do not lie to yourself, or avoid thinking about your financial situation.

What to Look for

  • Be informed of all possible consequences of your failure to take any action. Research all your alternatives before choosing a plan of action.

Potential Impact on Your Credit

Most creditors report unpaid bills and any payments that are over 30 days late. Such reports have a negative impact on your credit reports. Most negative items will continue to be listed on your reports for 7 years, and some negative items can stay on your reports for even longer. Unpaid judgments, for example, can stay on your report until they are paid or expire under state law. Such items on your credit reports will negatively impact your credit scores and this will negatively affect your ability to get credit (loans) as well as your ability to get favorable rates and terms on loans.