What Happens When I Don’t Pay Credit Card Debt? Here’s The Alternative
Don’t Pay Credit Card Debt – If you’re like most people, you hate paying your credit card bill. Some days you may even fantasize about not paying it and just forgetting about it. What’s the worst that could happen right? Well the truth is that a lot of bad things can happen if you don’t pay credit card debt. The good news is that a credit card debt relief company like Consumer Credit Card Relief can consolidate credit card debt and make dealing with your credit card payments a lot easier. Before we get into that though, let’s take a look at what will happen when missed credit card debt payments start to pile up, it isn’t pretty.
Short Term Problems
The first thing we’re going to go over is what happens to you if you stop paying your bill in the short term. The first 30 to 60 days of not paying your bill will bring quite a few problems your way, but for the most part you can recover, and get everything back on track if you take action. Finding a credit card debt relief program to consolidate credit card debt is also a good idea during this time as it will prevent your credit problem from getting to the point of no return. In any case, here are the things that you can expect to experience in a 30 to 60 day lapse of not making your credit card payments.
Face it, credit card companies don’t care about you, they only care about your money. This is why there will be fees if you miss a payment. The severity of the fee itself depends on the credit card company. Some may charge a one time fee for a missed payment. Others will literally charge you every single day you go without paying them. In any case, a credit card company will use missed payments as an excuse to milk you for cash.
If you’re like most people you probably hate interest, but it’s the primary way that credit card companies make money. In many cases if you miss a payment the credit card company will use it as an excuse to increase your interest. This will increase both the total amount of money you have to pay to get out of credit card debt, and increase the amount that you must pay each month. If you thought interest rates were bad before, missing a credit card payment will show you a whole new world of financial pain that you don’t want to deal with.
Lower Credit Score
In a worst case scenario a credit card company will report you for missing a payment and your credit score will take a hit. This will make getting loans and other lines of credit much harder in the future, and can also work to ensure that your initial interest rates for those lines of credit are even worse than they are now. If you stop paying your credit card bill entirely, then your credit score will suffer catastrophic damage that could take years if not decades to fix. Of course, a credit card debt relief program like the ones offered here at Consumer Credit Card Relief can help you even if you’ve missed credit card debt payments.
Your Account Gets Reported
We mentioned this earlier, but if you go 30 days without making your credit card payment, then your account is definitely going to get reported to the credit bureaus. Once again, this is something you want to avoid at all costs. If you feel like you can’t make a payment within 30 days of the due date, you need to seek the services of a credit card debt relief firm as quickly as possible so that you don’t get reported.
Your Card Gets Frozen
If you’re really in a bad spot and you don’t pay your credit card bill for several months, most likely the creditor is going to freeze your account, and prevent you from making any new purchases. This typically happens between 60 and 90 days of no payment. While this may not seem like a big deal in most cases, if you’re using your credit card for essential things like groceries or transportation, then this could be a life changing problem. Of course the mounting late fees won’t help either.
Long Term Problems
If you go more than 60 days without paying your credit card bill, then you’re going to be in for a rough ride. This is because your creditor will completely give up on you, and begin taking measures to recoup their losses. This could result in a variety of scenarios, none of which you want to deal with. Like we said earlier, you really want to contact a credit card debt relief company and get your situation straightened out before it gets to this level of credit card debt.
Your Credit Account is Sold
If a creditor things that they aren’t going to be able to squeeze any more money out of you, they will sell your account to a credit card debt collection agency. This means several things. Firstly, you have no negotiation power with your creditor anymore since they no longer own the account. Needless to say, dealing with a credit card debt collection agency is much more difficult than dealing with a creditor as they are much more aggressive and inflexible in their efforts to get you to pay up. You can expect tons of phone calls, emails, and other forms of communication that harass you nonstop to pay your bill.
The IRS Gets Involved
A credit card debt collection agency will use every trick in the book to get you to pay your credit card debt, and this includes using legal leverage as well. If the collection agency gets desperate enough, they can and will get the IRS involved as well. This is of course something you want to avoid at all costs. This is because the IRS will send you Form 1099-C. What this does is it requires you to pay taxes on all of your debt. The reason this is such a big deal is that while you may get away with not paying a creditor, or a collection agency, you will absolutely not get away with not paying the IRS. Failure to comply with Form 1099-C can result in hefty fines, and even jail time in extreme cases.
You Could Be Taken to Court
As mentioned before, credit card debt collection agencies are relentless in their efforts to get you to pay up. This means that if they are particularly desperate, they may just take you to court in an effort to get a judgement placed on you ordering you to pay the debt. If you lose in court, which you probably will, and you don’t have the money to cover the debt, you could have your wages garnished, or even have your assets seized.
Avoid All Of This Consolidating Your Debt
It goes without saying that credit card debt can ruin your life. This being the case, it’s incredibly important that you contact a debt relief firm as soon as possible so they can consolidate, negotiate and help you combine all debt into one simple payment that is flexible with your income.
If not, then you’re heading for financial disaster as your credit score will lower every year & Interest will build up every month.
Here at Consumer Credit Card Relief we specialize in helping over come your credit card debt problems & avoid all the consequences that will occur when you don’t pay credit card debt. Contact us today for more information on how we can help you get out of debt, and back to living life without the stress, get to the path of debt relief today !