What happens if you don't repay the money you borrowed with a credit card?

Answer 1

Pay whatever you can, even if it's just the minimum each month. If you are in over your head and feel there is no way out - seek a credit councilor in your area, they can work out a payment plan with your credit card companies that works for your budget and income. Don't underestimate the importance of good credit. What will happen if you ignore this debt is that it will haunt you the rest of your life in a poor credit rating - meaning that you will never qualify for a good interest rate on loans or a mortgage. Some consumer's are not aware that a creditor of any type can file suit against the debtor to recover money that is owed. Credit cards are unsecured debts, but that does not mean the issuer cannot sue the debtor and execute a judgment in several different ways. The majority of creditors use a judgment as a wage garnishment or bank account levy, there are also other options depending upon the laws of the debtor's state. The other misconception is that the creditor has to accept any payment the account holder makes. This is not true, if the account holder fails to make the minimum payment on the date stated, the lending agreement is in default. The creditor can continue to take payments of a lesser amount but can also send the account to collections or take other such action. The creditor will, as noted in the previous answer report late payments, and defaulted accounts to the credit bureaus.