What happens to you, when you quit paying your credit cards??

Question

Hi everyone. Im 19 going on 20, and I have 14 credit cards. For a long time my ex boyfriend was paying the minimums each month and now that we have been broken up for a long time, he no longer pays. Im just wondering if anyone knows what ends up happening once you can not pay the bills... Do they take your stuff? Can you go to jail? Anyone Please HELP!! ~Thanks

Answer 1

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Answer 2

You are pretty much going to screw up your credit for a long , long, long time.

After you stop paying your bills, the credit card companies will start hounding you. The calls will basically never stop for about a year or two. Then the letters.

Finally, they will write off the debt and sell your account to a creditor. This means two things -

1) Your original credit company will decalre your account a loss, and that will ruin your credit score.

2) Once in collections, you will get a new entry in your credit report for that and show as delinquent.

It may not seem important to you now, but trust me, it affects a whole bunch of things.

If you go to get a car, new or used, you will pay a MUCH higher interest rate - if they even give you credit.

Think you may want to buy a house 5, 10, 15 years from now? Think again. You will have so much trouble getting credit you may as well plan on a lifetime of renting.

Although you can still get some students loans for higher education (if that's where you are headed) other loans from the bank for school will be harder to get.

You may qualify to file bankruptcy, but I am not sure. I do know that they recently changed the federal laws to protect the credit card companies from folks filing bankruptcy, so that may not be an option for you.

DO NOT BELIEVE ANYONE THAT SAYS IT ALL GOES AWAY IN 7 YEARS!!!!!!!

This is simply not true. My wife and I just refinanced our home this year, and there were entries on my credit report from 10+ years ago and on hers from 15+ years ago.

Ask another question here about those companies that help you pay off your credit cards without screwing up your crredit report. I know that some are OK and some are a bunch of BS.

God luck!!!

Answer 3

The same thing happened to me....they won't take your stuff, and you don't go to jail....i lost my job, and i ended up in the hospital. I worked out payment plans later on down the road with the credit card companies...my credit is screwed up now because of it, but I couldnt help it. But nothing will happen and you and I are both young enough to still be able to repair our credit (I am 22)

Answer 4

Your credit rating e.g. FICO score will get slammed. That is very bad when you do need credit to buy a house or a car. When your FICO score is bad, all forms of credit e.g. credit card and loans will charge you much higher interest rates making it even more difficult to pay off.

To learn how to correct this problem, read "Young, Fabulous, and Broke", by Suze Orman. She's an excellent personal finance guru. Her book was written especially for young people starting out in their life that have financial issues.

Some of the things you can do, is ask your credit card company to lower your interest rate. It never hurts to ask. I've always gotten my interest rate lowered just by calling customer support. You can just tell them you got an offer in the mail from a rival card for a lower interest rate.

Then transfer all of your card balances to the lowest interest rate card. Cancel the cards that have the highest rates. Keep maximum of 2 cards. 1 card for paying off the balance. Another for EMERGENCY USE ONLY.

Instead of paying your entire bill at the end of the due date. Break the payment down into weekly payments. You won't get shocked for paying such a huge amount suddenly at end of month and realize you don't have enough in the bank. Paying in smaller increments weekly also forces to scrutinize your spending habbits.

See if your bank have automated electronic payment. All major banks offer these and usually for free. Set it up so your bank automatically pay the increments weekly so you don't forget.

You need to start confronting your spending habbits. You need to start feeling guilty by constantly looking at your monthly statements. A lot of people try to escape their problems by buying things they don't use or need. Then trying to hide from the debt problem by not looking at their statement. Happiness does NOT come from material things. Happiness comes from self worth created by your own beliefs.

Hope this helps.

Answer 5

I suggest that you make an appointment with a credit counselor immediately. Look in the Yellow Pages for the name of one. He or she can help you immensely. Seems to be your question should have been how can I avoid the consequences of being unable to pay off my present credit cards? Good luck.

Answer 6

Pay your cards even if its late or only the minimum. My best friend didnt pay and now he's being sued and they are seizing his assets, and ruined his credit. They have taken all his money from his bank account. This is 8 years after he started doing what your boyfriends doing. Debt does not dissapear. It just grows if you dont deal with it.

Answer 7

No, they do not take your stuff or put you in jail. They will ruin your credit and with that done you will wind up paying more for everything else. They can also take you to court and garnish your wages.

Answer 8

I would start with a credit counselor or financial advisor, good luck. After you repair your credit only use it to buy a house if you absolutely need to.

Answer 9

you credit will get messed up.

To avoid this, consolidate all your credit card bills, and pay one bill a month. Go to one of those companies that go help you consolidate your bills and restore your credit.

Answer 10

You will be sued and a judgment will be entered against you. Then your wages and bank account will be garnished.

They are your cards and you are responsible for paying your bills.