Can I Really Lose My Job if I don’t Pay My Credit Card Debt?
Any internet search on the consequences of not paying your credit card debt will turn up a list of scary events that include everything from ruining your credit to losing your house. Buried in many of these lists is the idea that defaulting on your credit card debt can make you lose your job. Is that really true?
There is no law that forces companies to fire people who owe too much debt or who have stopped paying their debt. It’s important to realize, however, that there is virtually no legal protection for employees if a company decides to do this. While it may seem ridiculous, there are some companies that have official or unofficial policies to terminate employees with too much debt or credit scores that are too low.
The federal government and financial institutions are the two groups most likely to have policies like this. It has been a long standing belief that people who are in financial trouble are much more likely to steal from their companies than those who are not. Since working with money can give employees ample opportunities to find victims, many banks, payroll firms, and accountants tend to require their employees to have clean credit reports? Government workers with security clearances are seen as high risk if they owe a lot of money. Having too much debt in these positions is seen as a risk because these individuals are more likely to be influenced by outside forces in exchange for gifts and bribes.
Beyond these fields, however, there is not a lot of risk of losing your job over credit card debt as long as the debt does not affect your work performance. If you frequently find yourself fielding calls from collection agencies while you should be on the clock, or worse, if your supervisor is answering those calls for you.
Before your debt starts to affect your job, take steps to get it under control. A debt consolidation loan can pay off all of your existing debts and replace them with a single loan that has a payment you can actually afford. You won’t have to deal with calls at work from debt collectors, and you won’t have to worry about losing your job because your credit score is too low for you to be trusted with money.