Paying off credit card debt can be a never-ending nightmare to get rid of off. Especially if you find yourself like most people living paycheck to paycheck. You probably thought of not paying off your credit card debt. So the question might off be wondering in your head: What if I don’t pay back my credit cards debt? Well, a lot of things will happen. If you have signed up for programs like credit karma or credit wise where your credit scores are monitored, you’ll notice that your credit score will drop. secondly, interest will start to add up along with the late fees and the monthly payments will increase. The more payments you miss, the bigger the amount will be required to pay a month. It will be harder to catch up and get the account current.
So what happens If I don’t pay back my credit card debt?
Most of all besides late fees and interests climbing over the current credit card debt, you’ll experience annoying calls from the credit card company. That is an attempt from the credit card company to collect the credit card debt that is due. If you are a week behind a payment that was due on your credit card debt, you may get a call from the credit card company and it won’t be an issue. However, if you are 60 or 90 days late, the calls from the credit card company will have a different tone and it is much aggressive. You will get to a point of defaulting on your credit card debt and that is something that you don’t want to find yourself in.
As days go on
When you are 30, 60, 90, and 120 days late on payments, your credit score will be severely affected. When your credit score drops, it becomes difficult for you to get a new line of credit such as a new credit card, car loan or a mortgage. If you get approved for a new credit card or a car loan, the interest will be very high compared if you would’ve had a great credit score you’ll be offered very low rates or with no interest at all. However, your chances of getting approved for a new line of credit will worsen if you have credit card delinquencies or closed credit card accounts.
If you have credit card accounts that were closed by the issuer, it usually goes to a collections agency. Collections that you have will also show on your credit report, hurting your score even more. All of this happens if you cave into the idea “what if I don’t pay back my credit cards debt?”
But there are options out there. Even if you are the bottom of the barrel in regards to your credit card debt, there is credit card debt consolidation available. A credit card debt relief company can help you and offer an array of options to tackle your credit card debt. Consolidate credit card debt is the most popular option that people take in order to regain control of their finances. But you may ask yourself how can a credit card debt relief company help me? A reputable credit card debt relief company would do is to analyze your current financial situation. Based on that analysis of your finances, a personalized financial plan is formed. Most likely a payment installment would be recommended as the most common way to pay off your credit card debt.
Consolidate your debt
As part of credit card debt consolidation, the current credit card debt along with the interest rate and any fees that are incurring on top of it will be negotiated with your creditors. The overall outcome should result in a lower interest rate or term extensions from your creditor. Consolidating all credit card debts is always a better option than filing for bankruptcy. Therefore it is always important to know how to choose the right consolidation company. A legit company like Consumer Credit Card Relief would give you the basic information and available options free of charge. To find out if a consolidation agency is legit is to check with BBB (Better business bureau) or the national foundation of credit counseling.
Once you found a credit relief agency, you should ask about their services, can they help you prevent future debt problems, and if they are licensed to provide financial management services by the state. If they show any kind of resistance to answer those questions freely, then it is a clear red flag indicator that the company isn’t legit. Especially if they ask you for your bank information or straight up ask you to pay an amount upfront, then it is another red flag. No actual credit consolidation company asks you to pay upfront so you can get basic information about their services. On the other hand, you have to think about if you actually need a credit consolidation company or not. Here is the question you need to ask yourself, can I actually deal with the creditors on my own? Do I have the ability to negotiate and come up with an offer? And do I have the time available to deal with the creditors? Taking the matter on your own hands can be time-consuming. All of these questions you need to think about if you are better off paying an agency to deal with the process. Also, you’ll need to establish a budget plan and your monthly expenses. Whatever plan you worked out with the consolidation company it must be followed strictly if you want to pay off your debts.
To the path of Credit Card Debt Relief
Getting out of debt isn’t easy and if you have multiple credit cards that were maxed out.
However, it isn’t impossible to set yourself free from debt. Financial education and guidance is the key to financial freedom. Help is out there available to help you consolidate credit card debt. You can then use your past experience and knowledge to make better decisions when applying for a new credit card and be able to manage it much better than before. Or you just may decide on not applying for a credit card never again.