What's the maximum amount of income that can be garnished for credit card debt?

Falling behind on your credit card payments can set off a chain reaction that's hard to stop. What starts as a missed card payment caused by temporary financial challenges can quickly turn into mounting interest charges, relentless collection calls and, eventually, legal action. And, for some borrowers, that legal action ends with part of their paycheck being taken before it even reaches their bank account.

This process, called wage garnishment, is one of the most serious consequences that can come with having unpaid credit card debt. Once a creditor wins a court judgment for that type of debt, they may legally have the option to order your employer to withhold a portion of your earnings to cover what you owe. If this happens, it can cause serious issues with your finances, especially if you're already struggling to keep up with your daily expenses.

Creditors can't take your entire paycheck, though, and there are strict federal and state rules that limit how much they're allowed to garnish. Knowing these limits and the steps you can take to address delinquent debt before it gets this far can help you protect your income and avoid a financial spiral.

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What's the maximum amount of income that can be garnished for credit card debt?

Credit card debt is considered unsecured debt, meaning it's not backed by collateral like a home or car. That distinction matters because unsecured creditors generally can't garnish your wages without first suing you in court and winning a judgment. Once that happens, though, federal law sets the maximum amount that can be garnished from your disposable earnings, which is the amount left after legally required deductions like taxes and Social Security. Specifically, creditors can garnish the lesser of these amounts:

• 25% of your disposable income, or
• the amount by which your weekly disposable earnings exceed 30 times the federal minimum wage (currently $7.25 per hour)

For example, if your disposable weekly earnings are $800, 25% of that would be $200. The amount exceeding 30 times the minimum wage is $800 − $217.50 (30 × $7.25) = $582.50. The lesser of these two is $200, so that's the maximum that could be garnished weekly.

States can impose stricter wage garnishment limits, though, and many do. Some states cap garnishments at a lower percentage, offer additional exemptions for low-income workers or even prohibit wage garnishment for unsecured debts entirely. For instance, Texas and Pennsylvania generally bar wage garnishment for credit card debt, though other collection methods may still be allowed.

It's also worth noting that if you have multiple garnishments, let's say for child support and credit card debt, the child support garnishment order typically takes priority. And if your employer receives multiple garnishment orders, they must follow specific rules about how much can be withheld overall, with child support, taxes and federal debts often taking precedence.

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How to get rid of your delinquent credit card debt and avoid wage garnishment

Once a garnishment order is in place, it can be hard to stop. There are several debt relief strategies you can use to address delinquent credit card debt before it gets to that stage, though, or in some cases, even after, if you act quickly. Here's what you may want to consider:

Negotiate a settlement directly with creditors 

Credit card companies often prefer a negotiated settlement over the cost and hassle of litigation. If your credit card account is significantly delinquent, you may be able to offer a lump-sum settlement for less than what you owe. For example, a creditor might agree to accept 50% to 70% of your balance if you can pay it all at once. This won't erase the negative marks the delinquent debt has placed on your credit, but it can stop legal action and future garnishments.

Work with a debt relief company 

If you're uncomfortable with the idea of negotiating on your own, a reputable debt relief company can step in to help. These companies work to negotiate down your balances while you make monthly deposits into a dedicated account. Once there's enough to make a settlement offer, the debt relief experts will negotiate with creditors on your behalf. This can be an effective option for borrowers who are already behind on payments and facing collection calls, though it's crucial to choose a trustworthy company and understand the fees involved.

Enter a debt management plan through credit counseling 

While traditional budgeting strategies like the snowball or avalanche method generally aren't practical for severely delinquent debts, debt management plans through credit counseling agencies may provide structure and relief. With a debt management plan, the agency works with your creditors to reduce your interest rates and set up a consolidated monthly payment. This can halt debt collection activity, and in some cases, creditors may agree to pause legal action if you're actively participating in a debt management plan.

Consider bankruptcy as a last resort 

For some, especially those with multiple debts and limited income, filing for bankruptcy may be the most effective way to stop wage garnishment. Filing for bankruptcy triggers an automatic stay, which halts most collection activities, including wage garnishments. Chapter 7 can discharge unsecured debts like credit cards entirely, while Chapter 13 allows for a structured repayment plan. While bankruptcy has serious credit consequences, it can also offer a fresh start for those facing relentless collection pressures.

The bottom line

Wage garnishment for credit card debt can seriously disrupt your finances, but it's not an inevitable issue. Federal law caps how much creditors can take, and many states offer even more protection. Still, once garnishment begins, your paycheck shrinks automatically, often with little room to maneuver. The best strategy to counteract this is to act early. Addressing the debt head-on before it reaches the courtroom is almost always easier and less financially painful than waiting for garnishment to take hold.