Most people open credit card accounts early on in life without much knowledge, and sometimes other people can cause confusion in how the system works. This makes some ask the question “What happens if I don’t pay my credit card back?“. Unfortunately, companies often don’t care if you missed a payment due to medical emergencies or if you have a lot going on in life, so people in all walks of life have a little credit card debt accrued at some point. Some people feel like giving up after missing one payment, but there are ways to mend your credit score and help with credit card debt relief.
What Happens if I Don’t Pay My Credit Card Back?
One missed payment can cause massive amounts of credit card debt. Typically after one missed payment, you have a late fee that can cost up to $27. Luckily, some companies can waive the fee on your first offense if you contact them and explain what happened. However, on the second missed payment, your late fee can increase to around $38 and starts to accumulate interest. Usually the company will begin the process to close your account after three missed payments, and more than three will cause substantial damage. This includes selling your credit card debt to a collection agency, destroying your credit score immensely, and even a lawsuit against you. It’s best to make sure you are making every payment, as even one missed payment forces some companies to mark your account as delinquent, which stays on your credit score for seven years. You will likely not be contacted by the collection’s agency until after three missed payments, and some are willing to negotiate and create a payment plan that is affordable to you for credit card debt relief.
What Happens if I Never Pay My Credit Card Back?
Simply put, whoever owns your credit card debt is allowed to use any legal means necessary to be paid back. Taking the one who needs help with credit card debt to court is often the answer.Some may ask what happens to the credit card debt if you move out of the country. The answer is that it still does not matter. The lucky part of this scenario is that your United States credit score does not follow you to other countries, though you will have to build up a whole new score wherever you are residing. The bad news is that the debt collectors can still follow you by either targeting assets you have left behind in America, and file lawsuits against you if they are able to take it to that country. Sometimes, if the cost of performing the lawsuit in another country will cost more than what you owe, then some debt collectors will stop pursuing you.
Another common question is what happens to the credit card debt if the one who owns it dies. In this case, the collectors will transfer the debt onto someone else connected to or responsible for the account, spouses, or the owner’s estate. Some states protect spouses from accruing their loved one’s credit card debt, so it depends whether you live in a community property state.
How do I Start to Relieve My Credit Card Debt?
If you personally need help with credit card debt relief, a good option to get started is by trying out the Consumer Credit Card Relief website. Before you give up hope and file for bankruptcy, trying out services like Consumer Credit Card Relief can be beneficial. Some of what they can do for you include, but are not limited to, credit card debt relief, debt consolidation, and helping you decide when it’s appropriate to file for bankruptcy. Following through with help in credit card debt relief can aid you in lowering your monthly payments, interest rates, and can even help protect your credit scores and reports. Visiting a website like Consumer Credit Card Relief can be extremely beneficial for those suffering from credit card debt right now, and it doesn’t hurt to try out getting help from outside sources. With a reliable service like Consumer Credit Card Relief, you can get debt fighting plans that meet your needs and situation. Learning how to properly budget, setting financial goals, and changing spending habits are some of the skills you can take from this service; even after your credit card debt is gone, you can keep what you’ve learned and apply it to decisions in the future to prevent from accruing more debt.
If you have a lot of credit card debt right now, a few tips may help you to start planning how to get out of it:
- Start paying off the credit cards with the highest interest rate. It helps to sit down and make a list of all your debts to find out which ones need the most attention first, which are those with the highest interest rates.
- Plan a budget. Getting exact numbers right and sticking to a spending plan can be really difficult, but making cuts where necessary decreases your chances of creating more debt.
- Freeze the cards. It’s best not to be tempted in spending money you don’t have, so to completely stop more debt from accruing, freezing your credit cards is your safest option. Focus on only spending what you have on debit cards, or better yet, cash.
- Add to monthly payments when you can. If you have a little extra money, it would be nice to pamper yourself; however, the smartest option would be to direct that extra money to your payment that month to help it get relieved quicker.
- Increase your income where you can. If you’re already working a lot of hours, this can be tough, but will be worth it in the end. If you can pick up extra hours at work, be sure to take them. When offered holiday work days with holiday pay, jump on it. If your work doesn’t allow extra hours or overtime, it might be a good idea to pick up freelancing or small jobs helping others on the side.
In summary, it can be really difficult dealing with credit card debt relief on your own. Increasing monthly payments and interest, followed by decreasing credit scores and possible lawsuits can be extremely overwhelming. A lot of people often feel ashamed, but missing a few payments happens to most people. If you have credit card debt, the best course of action is to start planning how to get rid of it now. Don’t be afraid to get outside help, as it’s very difficult to deal with credit card debt relief on your own.