If you find yourself unable to make payments to Aarons, you will not face jail time, as defaulting on a civil debt is not a criminal offense. However, there are significant financial and legal consequences that can impact you.
No Jail Time, But Serious Financial Repercussions
While imprisonment is not a concern for unpaid bills, Aarons will actively pursue the outstanding debt. This often involves their internal collections department or the debt may be sold or assigned to a third-party debt collection agency. In either scenario, the primary goal remains the collection of the money owed.
Potential for Wage Garnishment
A significant consequence of unpaid debt is the potential for wage garnishment. If Aarons (or a debt collector they assign your account to) successfully sues you in court and obtains a judgment against you, they can then seek a court order to garnish your wages. This means a portion of your paycheck would be directly withheld by your employer and sent to Aarons or their collection agency until the debt is satisfied.
- Impact on Income: Wage garnishment can significantly reduce your take-home pay, making it harder to cover other essential living expenses.
- Legal Process: Garnishment typically requires a court order, meaning a lawsuit must be filed against you first.
Negative Impact on Your Credit Score
Failure to pay Aarons will almost certainly be reported to major credit bureaus. This can lead to a substantial drop in your credit score, making it difficult to:
- Obtain new loans or credit cards
- Rent an apartment
- Even affect employment opportunities in some cases
A poor credit history due to unpaid debts can linger on your credit report for up to seven years. For more information on debt collection practices, you can refer to resources from the Consumer Financial Protection Bureau.
The Role of Returning Leased Items
Returning the leased merchandise to Aarons can be a beneficial step, but it's crucial to understand what it does and does not accomplish. While turning in the gear can help avoid certain types of court proceedings, particularly those related to the repossession of the property or charges for retaining it unlawfully, it does not necessarily eliminate your financial obligation.
The debt for the missed payments or the remaining balance under your lease-purchase agreement may still be pursued. Aarons' primary goal is to recoup the financial loss, whether through continued payments, collection efforts, or legal action. Therefore, even after returning items, you may still "have to pay" the outstanding debt through collection efforts, including the potential for wage garnishment.
What to Do If You're Struggling to Pay
If you anticipate or are currently experiencing difficulty making your Aarons payments, taking proactive steps can help mitigate the negative consequences:
- Communicate with Aarons: Contact their customer service department as soon as possible. Explain your situation and explore potential options, such as a temporary payment arrangement or lease modification. They may be willing to work with you to avoid default.
- Review Your Lease Agreement: Understand the terms and conditions of your agreement, including late fees, default clauses, and options for returning merchandise.
- Seek Financial Advice: Consider consulting with a non-profit credit counseling agency. They can help you assess your financial situation, understand your rights, and explore strategies like debt management plans.
- Understand Your Rights: Familiarize yourself with consumer protection laws regarding debt collection, such as the Fair Debt Collection Practices Act (FDCPA), which protects you from abusive debt collection practices. More details can be found on reputable legal resources like Nolo.com regarding wage garnishment laws.
By understanding the potential consequences and taking proactive measures, you can better navigate financial difficulties with Aarons.
