What happens if you quit paying credit cards?

Answer 1

Credit card companies will do whatever they can to collect the money you owe them. If you quit paying the first step will be using either their own or an outside collection agency to try to collect the money. They will send letters and call you. If they can't find you they will attempt to find relatives and they will call your relatives and ask them to pass along a message. They can be very harrassing. If the collection efforts don't work they can take you to court. If you are working they can garnish your wages (a portion of the wages will be sent by your employer to the credit card company before you even see a paycheck). The worst thing that happens if you quit paying is that your credit score will be damaged and it can affect many aspects of your life. Potential employers can check credit scores and are less likely to hire someone who has poor credit. Also other creditors (car, house, etc) can often raise your interest rates if you've defaulted on credit cards because they then consider you high risk. Landlords can check credit scores and may demand high security deposits or several months rent. Insurance rates can go up...all these troubles can follow you for years, and even if the credit card company stops trying to collect the debt they are likely to check up on you once a year and if you begin to accumulate assets (open a savings account, buy a house, etc.) they will begin collection efforts anew. The best thing to do, if you are struggling with credit card debt is to talk to the company. Explain what got you into trouble in the first place and what you are doing to get your debt under control. Ask them to work with you and if they agree to do that be sure to stick with the terms you agree to. They may lower your minimum payment, lower your interest rate, or offer you a period of time when you don't have to make payment. It's really important to have this conversation BEFORE you have missed payments and they begin collection efforts. They are more willing to work with you if you are trying to work with them. Hope this helps.