What Really Happens If You Don’t Pay Your Credit Card Bills

Do you have a stack of bills on your table that just seem to be collecting over the months and not decreasing in any way? Has your credit card company sent you a letter that is no longer on white paper but in red instead? With current economic crisis, even the deepest pockets are feeling the pinch at the moment. So are you wondering what really happens if you don’t pay your credit card bills?

First, you’d be given letters to remind you of your outstanding amounts. Now, to even get these letters, you’re in some sort of trouble already so – be wise when it comes to spending. If you continue to ignore your bills, you’d receive warning letters followed by collection calls. They have got all the right to interrupt your day asking if you remember your dues and so on.

Complaining is not an option as you are in the wrong here. Sometimes, the caller may get harsh and try to threaten you. Take down their name and contact number and keep note of who calls and when. Don’t get intimidated by them. As a consumer, know your rights and report any violations. Credit card companies are only allowed to remind you and then in more serious cases take on legal action. They cannot take away your property.

Next, your credit card company would then proceed to canceling your credit card subscription without notice. When you find that you cannot continue to purchase items with your card, you know you’re in serious trouble. So if you haven’t cut up your card on your own already, please do so once the letters come. Next, you may face an increment in your interest rates.

This is when you would have to pay back more than necessary. Sometimes, you can send in an appeal letter asking for a time extension or that you pay a certain percentage of your bills first.

If you don’t make any effort to settle your outstanding dues, the credit card company will then continue to give you a bad credit score by filing a report to the Central Credit Bureaus so these missed payments are likely show up in your credit report and this has a terrible impact on the credit score. With this, future loans you apply for mortgage, car loans and study loans would be denied and blacklisted. This would impact your job opportunities as well.

Eventually, if you still choose to remain ignorant, legal action would be taken against you. This would results in liens, garnished wages or any other legal judgment which would be required to pay your debts. Most companies try to avoid this step as it is time consuming, complicated and quite an expensive process but if it really is necessary, such legal action does happen.

Along with this comes the general myth about credit card companies which is that they would freeze you bank accounts. But this isn’t true; your personal account cannot be tampered with without first having a court judgment against you.

In conclusion, credit card bills can be quite a hassle not taken care of. Always spend wisely and live within your means. Try avoiding credit cards if possible.