What would you like to do?
What will happen if you do not pay your credit cards?
- The question of what "will" happen is not one that can be answered because there are numerous avenues a creditor can take. However, we can say what is likely to happen. First, they will report your late payments to the credit agencies and damage your credit rating (in addition to their late fees of course). Then, when the delinquency reaches a certain point (180 days is common) their GAP accounting rules require that they realize the loss and charge the debt off. This charge off also goes on your credit. A charge off essentially means they have tried to get their money back but have exhausted reasonable attempts. At this point they can take you to court to sue you for a judgment and maybe garnish your wages, or simply send you to a collection agency who will hound you. Court time costs money, so you're more likely to see option number 2. Many states have time limits on debt collection, you may want to check the laws in your area. If these consequences don't sound so good, call the card company and negotiate a lower rate and payment, offer to settle the account for a partial amount (you may have to borrow from friends or family to get the cash to do this) or meet with a bankruptcy lawyer to discuss chapter 7 or 13 protection.
- Adding to the above answer: 1. When a lender sues a consumer for a defaulted credit card or loan, they may also seek compensation through the judgment for their attorney fees and associated court costs to be paid for by the consumer. So, in that context, it would not expensive for the lender to take the consumer to court. 2. There are no "time limits on debt collections". HOWEVER, there ARE "statutes of limitation" laws but these pertain to the how long a creditor has (in years) to SUE a consumer for the unpaid debt. If the statute in your state is 6 years, and you haven't paid on the debt in 7 years, you may still be contacted to pay the bill but the creditor can take no action if you do not. Also important to note is that the statue term BEGINS with the date of the LAST PAYMENT the consumer made, not the date that the line of credit was first opened. Certainly, it would seem rather stupid for a lender or debt purchaser to attempt to collect on a debt that is no longer showing up on a credit report and for which the lender has no power to force repayment via the courts, but it does happen. 3. Finally, laws vary state to state on the number of years before a statue expires as well as what specific action a lender may take, if any, to force repayment of a debt through a civil judgment. 4. "Written-off" and "charged-off" are not the same thing and it is helpful to know the difference. Charged-off means the account has gone 180 days (approx. 6 months) without a payment, the account will have been closed down and, most likely, the balance is now due in full to the lender. While it is still possible to negotiate a monthly repayment of the debt, the lender is not legally required to do so and can demand the full outstanding balance be paid immediately. Written-off accounts have been reported as a loss for the lender as unrecoverable. If an account is written-off by the lender, they may report this to the IRS and you may become responsible for taxes on the unpaid balance. Finally, I am not an attorney and am not offering legal advice. While there is helpful information on line, the best thing to do is to consult with a LOCAL attorney in your area (and I stress local to you...not a debt negotiation company who happens to have an attorney affiliated with them).
+ 31 others found this useful
Was this answer useful?
Thanks for the feedback!
Answer The creditor can sue the account holder(s) to recover the debt. The defaulted account will be entered on the consumer's credit report and… negatively affect the person's credit score. That type of negative entry will remain on the CR for 7 years.
Answer . When you over pay a credit card, you have then a "credit balance." This means, in essense, the credit card company owes you money. You can either have them send …you a check to pay off the difference, or the credit balance will be eliminated when/if you use your card again.
I am assuming that you simply cannot afford to pay them. A few years ago you could claim bankruptcy and you wouldn't have anything more to worry about, but Dubya's pals in the… credit card business made sure he took care of that little loophole. Anyway, if you do not pay them you will be hit with late fees every month, which of course puts the balance up. Not that it matters to you; if you couldn't afford 1000 dollars, it might as well be a million, right? You can expect to get a phone call every day, and sometimes every night from people who get progressively more aggressive and downright nasty. You can't blame them entirely; they make a commission on whatever they can manage to get from bad accounts, and you can't get blood from a turnip, can you? Eventually, and I don't know how long it might take, but eventually the credit card companies will get the idea you are not going to pay, and you will become a charge-off. Your credit will go in the toilet for a while, although people will still want you to buy stuff on credit, because if you are not paying Visa, that means you have some extra money that MasterCard wants to get. It's a funny world that way. Unfortunately, these dead accounts are sold for pennies on the dollar to real bottom feeders who will tell you anything and everything to get a couple of bucks out of you, because it's all commission paid on what they can frighten out of widows. The one thing that they cannot do, even though they are "really, really trying to help YOU" is repair your credit. Giving them dollar one will do nothing for your credit. When we were going through a bad patch that eventually lead us to bankruptcy, we were told that it was possible to retain a lawyer for not too much money, and every time you got one of these calls you simply had to say "the matter is in the hands of my attorney Tom Smith and you should call him at whatever number. In fact, as long as you find a real attorney with a real phone number you can tell these sleazeballs you have retained him; they aren't the type to go messing about with attorneys. They are after the soft underbelly of people who are worried sick, and are in a bad patch. The one thing you cannot ever do, is to try and get into a reasoning match with these people. They are reading from scripts and they won't budge from them. Get yourself a phone with caller ID, change your phone number and only give it to your immediate family and, of course, don't list it. Phil SEE IT FROM BOTH SIDESCredit cards are sort of like a bank that loans money to you. Every time you make a purchase on your Visa card you owe the Credit Card Company. Then you keep charging knowing full well you can't pay the balance off and your Visa bill escalates and then they request at least the minimum payment (which only covers the interest) and perhaps a person can't even manage that. Unless wealthy, the average person should only use their Visa card for emergencies such as Medical Care, their car broke down, etc., but should never be used to buy things you don't need or to start buying your food on your Visa. Oprah Winfrey a couple of years ago had this very subject on her program an a lawyer states that in order to pay your Credit Card balance off the Credit Card company would have to lower their interest rates. The above poster actually made some fine points. Several months ago I did some research into Credit Card Companies because I always knew they loved people that had an out-standing bill (they made more profit from those that were terrified they would lose their credit, home, etc.) Credit Card companies are vicious and do try to scare people, but, when I researched it all they dislike people that pay their credit card balance off at the end of every month and have a special nickname for these clients (can't remember what it is.) I suggest you go onto "Credit Card Debt" on www.google.com and snoop around and see how it all works and what your rights are. In one way it's not fair to rack up debts and then make no effort to pay because you put the onus on the other people that do pay their debts off. Make the best effort you can and if you do and you are telling the truth there is no court in the land that will back the Credit Card Co. They want you in debt! I never use my Credit Card unless I need too for emergencies or to reserve a place to stay on holidays or a theater ticket to a play. I pay it off right at the end of the month and the Credit Card Companies hate this! You loaned their money and you should have the pride to do the best to pay it back and then cut up those credit cards! Americans in particular are in major Credit Card debt.
Many people in there life come across this question that what happen if i don't pay my credit card bill? if you stop paying your credit card bill payment, you may have to face… some problem in your routine life. Few are : you have to face content collection call from the bank. High interest rate and late fee charges. Legal Action from the bank etc. Find detail article on this in "Related Link"
The balance on your Macey's card statement will read a credit (negative number) until further charges bring it back to a positive number. If the amount is substantial you may …be able to ask for a refund.
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 collect…ion 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.
Your credit willl suffer very badly, however they will be removesd from your credit report in 7 years from your last payment. Repeat- buy law they must be removed from y…our credit history 7 years from your last payment/ known activity. If you make one and only one payment 5 years from now it will be 7 years from that date. Don't thank me, thank Suzy!!
If you don't pay your credit card, then it gains interest (even if you have good or bearable interest rates it will still gain interest). With enough interest, you can go into… debt, which is not something you'll want or be able to get out of easily. This is one of those cases where the saying 'better late than never' applies.
Credit Card A Credit Card that is overpaid...they send you a statement on a monthly basis stating a negative balance. (-1.00) You will not receive inte…rest or anything. It will sit there until you use your card again. If you have had any hassles with your Wal-mart, Zellers, Sears cards... here's a little food for thought. Overpay them by 10 cents and they are legally bound to send a statement of balance (+ or -). It cost them more money to send you a statement every month. I don't recommend this to all credit card issuers, but if they send you a bill for that interest that occurred of 57 cents when you paid off your card... those are the one that deserve this!!!
Yes, you will be able to pay one credit card bill with another credit card. There are a couple of different ways to do this: 1. Balance transfer - There are credit cards t…hat would let you transfer some of the the balance from one card to another. The interest for this transfer is usually lesser on the transferred balance. 2. Using Credit Card Checks - You can also use the checks that come with some credit cards. All you've got to do is write a check for the amount due. This transaction does not carry any additional charges along with it. 3. Cash Advance - There is also a possibility of getting a cash advance from a credit card and this can be deposited into your savings account or even used to pay the bill of another credit card.
Most people know credit cards are unsecured debt(s). And some are under the mistaken idea that the companies have no recourse if a card holder defaults. That is, of course not… true. They have the legal option to sue to recover their monies. Not being able to pay is unfortunately not considered a defense in a creditor lawsuit. If the creditor wins a judgment they can garnish wages, and levy bank accounts. Place liens on real property (sometimes force the sale of that property). Petition the court to liquidate any non-exempt assets of the debtor. Every state has a set of exemptions to help protect a debtor's property. It is a good idea for everyone to be informed of what those exemptions are (just in case). Amount of debt A lot depends on the amount of the debt. If it is only several thousand dollars they will sell your account to a collection agency who will start hounding you at home and work. They will also place a negative report with the credit reporting agencies and all future credit will probably be denied for the next seven years. If it is a substantial amount then you will probably get a letter from an attorney and they will take you to court. When they get a judgment it will be collected in accordance with the laws of your state. Property Any real property that YOU OWN, such as land, houses, business property, and inventory, can have a LIEN put on it, so that if and when you sell that property, the amount of the lien has to be paid off, before you get any money from the sale. Liens are registered at the county or state level. What to do Writing a hardship letter to your credit card companies can result in lowered interest rates and lowered payments.
Answer The phone calls will start and eventually your phone will ring off and on from 8am until 5pm. It will feel like you are being harrassed and th…ere is nothing you can do (short of having your phone disconnected). They will take you to collections, garnish your paychecks, your credit will be ruined and you will have a hard time financing anything for the next 10 years after a settlement. Advice: pay your credit cards or go to a credit councelor to help you figure it all out. Answer They can take you to court, attach your wages, take back some of the stuff you bought or maybe, if you're lucky, they'll only report you to the credit bureaus. Answer Certainly nothing incorrect with the previous answers. What happens is you inevitably pay much more than you could have, in money and time and effort -- and especially trouble....and likely, the businesses involved will make more!
\n. \n Answer \n. \n. \ngoes to collection agency Answer. I don't know, but like most things, it is best to take care of business and not put it off. Someday you will… need credit again and the sooner you get back on the right path, the better off you will be in the long run. The first thing to do is to reduce your lifestyle to the least you can spend (housing etc. at less than half of what you earn?) and sell your belongings ($4,000 car instead of ?) and bank the results. Go on a spending holiday--buy only food that you can cook. Check out bankrupcy. Go to a non-profit credit counseling. Your credit rating is probably toast for awhile, but even after a few years, bankrupcy clears off of it.
Answer Yes you can! The method is called : Balance transfer. I did it for 2 months in a row. I had no money to pay my VISA card. However, my Discover card had $1000.00 of … credit available. My Visa card bill wanted a minimum payment of $300.00. So I transferred $300 from my Discover card (which I was not using anyway) to my Visa card. The next month, I did not have money enough to pay all my bills. So I transferred $ again from Discover to Visa. I did an online Balance transfer. *NOTE Balance transfers do not get approved right away. It can take anywhere from 3-14 business days. Depends on what credit card company it is & depends on the amount of the transfer. So leave yourself enough time before the due date of the credit card (you are transferring money to). Also, be careful with this... the fees for balance transfers can sometimes be steep, and they will increase your debt. Every credit card is adding interest to your debt each month, so don't get yourself into a situation where you are just adding debt and never have a chance to get out.
If you fail to pay the minimum for 6 or more months you would be looking at jail time in most cases.
%DETAILS% You will default on your credit card accounts. Being an unsecured loan, there is little a credit card company can do. That is a risk credit card companie…s take. Regardless of why you can't pay, non-payment will result in default. The extent to which a credit card company will attempt to collect depends on whether or not they feel you have sufficient income.
The statute of limitations is tolled (stops running) until you return to the US, when they may still be able to sue you.