What would you like to do?
- 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).
331 people found this useful
Was this answer useful?
Thanks for the feedback!
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.
Answer That is totally dependent upon the creditor. The account will eventually be charged off, and then either referred to a collection agency, sold to a …third party collector, or cancelled as a uncollectible. Unless a debt is cancelled it is subject to collection procedures. The debtor can be sued for monies owed as long as the debtor's state's SOL for the filing of such litigation has not expired.
Answer . \nThe original creditor will either attempt to collect the debt using their own collections department or refer the account to an outside collection agency.\n. \…nGenerally after 180 days of default the original creditor will "charge off" off the debt, this does not make the debt invalid or uncollectible.\n. \nSome original creditors will sell the debt to a third party collection agency, some will have their legal counsel initiate a lawsuit to recover monies owed, some will cancel the debt.\n. \nA third party collector also has the option of pursuing a lawsuit against the debtor as well as using regular collection procedures.\n. \nIn addition the default will be entered on the debtor's credit report and will remain for seven years, thereby doing serious damage to the consumer's ability to obtain future credit.
\n. \n Answer \n. \n. \nLot's of possibilities:\n. \n . Law suit by the credit card company\n . Garnishment of wages\n . Lien on property\n . Bad credit rating\n … . \n. \n More \n. \nAs a bottom line, in case it isn't clear, along with things like the above, you more than likely will end up paying what you owe sooner or later, PLUS all the cost of them having to take actions and/or wait to collect it..
There are a few things that happen if you do not pay your credit card. In the long run, at least making the minimum payments regularly will pay off. For one thing, the credit …card companies can raise the interest rates at will and many of them will raise rates on other cards you have if you miss a payment on another. They can't and will not garnish your pay. Second, late payments and charge offs really do affect your credit score for a long time, resulting in higher interest rates when you do qualify for a loan for a house or car. Finally, it is best to get into the habit of paying for services and things that you buy. It is the basis of our economic system and is better for everyone in the community. Also, life is easier without constant worries about what will happen. In short following things will happen. Collection CallsCredit Card CancellationCollection Agents on your DoorIncreased Interest RatesBad Credit ScoreLegal ActionBankruptcy
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.
The bill adds up. Example, if you have a $200 debt on your credit card. You don't pay it for a month, then it jumps to, let's just say $250. Next month $300, month after that …$350, $400, $450,.... In short the bill gets bigger.
Answer The first thing is that the original creditor will charge this off. Which means that the original creditor is no longer financially liable. This credit card will… remain closed; which will decrease your credit score. Non payments for each month will also decrease your credit score each an every month. Late payments give you the same results. If this account is sold to a collection agency then your best bet is to negotiate a settlement, and get everything in writing before making a final payment.
If you were in good standing with the card company then you will be still in good standing. You can use the card when you chose just like before.. If you were not in good sta…nding, Then You want to call and talk to the card company.
they will add a late fee to your bill, try and contact you, eventually lower your credit limit, and have a collecting agency contact you
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.
If you can't pay - contact the card company now ! Explain you're having difficulties meeting the payments and ask them to calculate a lower payment rate over a longer time per…iod. Do not let it get to the legal stage, as they'll add legal fees to your existing debt ! Most companies will gladly negotiate a lower payment over a longer time, than instigate legal proceedings.
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!!
First, you start getting dirty phone calls from your creditors. And they continue until they go collections. Then it gets ugly. Your credit scores starts to plummet, because y…ou have bad credit you can't get a job, you can't buy a house, you can't buy a car...all because you decide to quit paying your bills. This in turn starts jacking up interests rates, not just for you personally, but also company wide, to make up for the loss. If you are really lucky, the credit card will not take legal action and sue you. Hope you have a good lawyer if that happens. Once the mess you created is fixed, then, just maybe in five years, your score will be good enough to get a high-interest credit card or loan. Maybe.
The credit card company won't give you a credit card if you don't have any kind of income. According to your income on a yearly basis they will decide if you will be able to p…ay of your debts. Most people with a lower income will get around a 1000 to 2000 USD max. limit
the credit card company sends people to get their money i would want to pay them.
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.