What will happen if you do not pay your credit cards?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

  • 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

What happens when you over pay on a credit card?

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

What happens when you do not pay your credit cards?

Answer . \nThat 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

What can happen if you do not pay off credit cards?

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. \

What happens if you do not pay your credit card account?

\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

What happens if you do not pay on your credit card?

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

What will happen if you do not pay credit cards?

Answer 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 pal

What happens if you quit paying your credit cards?

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

What happens if I do not pay my credit card bills?

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 r

What happens when you pay a credit card in full?

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

What happens if you quit paying credit cards?

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 ag

Can't pay credit card what happens?

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 p

What happens if I don't pay me credit cards?

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 your cr

What happens if you quit paying your credit card?

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

What will happen if you do not pay CREDIT CARD?

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