What would happen if you stopped paying on your credit card altogether?

Answer 1

You will have shown that you have the following (negative) traits:
Dishonest, unreliable, dumb, untrustworthy.

Suggest you rethink because you will have a hard time getting help if you ever should need it.

Have a good life!

Answer 2

First, it would show as a 30 day late payment on your credit report, then 60, then 90. The credit card company will charge you interest on your balance plus a late fee, and if the interest or late fee takes you over your credit limit, you will also pay an overlimit fee. The late and overlimit fees will be added to your account every month that you don't make a payment. Eventually, the credit card company will turn you over to a collection agency, but by that time, the balance on your account will probably be 2 to 3 times the original balance. The collection agency will call you at home, call you at work, and constantly contact you to pay your bill. You will now have a collection account on your credit report. If you do not pay the collection agency, they can then sue you. You will then be court ordered to pay your outstanding debt, and will show a judgement on your credit report. And the negative impact on your credit report may not go away after 7 years. The collection agency could also sell your account to another collection agency, who can then sell it to another collection agency, and so on. The best bet is to just pay on your credit card.

Answer 3

First they will call you endlessly to badger you to pay back. They'll call your spouse, your mother, your neighbors (all legal).

Then, they'll turn you over to a collection agency, who'll call even more often.

Then, they will go to court to have a judgment issued against you, legally requiring you to pay the bill. Unless you contest it, you will be required to pay them.

If you can't pay them, you will have to declare bankruptcy to attempt to keep whatever monetary assets you have. If you don't declare bankruptcy, they'll simply just take an asset (like your car, for example) and sell it with the proceeds going to pay off your debt.

That's what will be done in the open.

What gets done behind the scenes is that all of this gets reported to the credit bureaus.

Your credit score will take a major hit.

Now the next time you go for credit, you'll either get denied outright or be offered ridiculous terms (like the usuary rate of 35% per year or something like that).

But it will go farther....employers and landlords routinely check credit scores on potential applicants and you'll be denied the job or apartment because of too high a credit risk.

Forget cheap insurance rates....you'll be placed in the highest risk category for both home/renter's and auto insurance and you'll be forced to pay thousands of extra dollars over the years to make up for being a bad risk.

In short, looking at you have to lose, why would you ever want to just walk away?

It would be much better and much easier to just re-work your repayment terms.

Answer 4

well it depends on how much you owe.Most of the time they will just hound you for years if it is a non secured credit card. Then it will be passed to a collector at least 20 times and they will do everything short of coming to your house to get you to pay it .Naturally your credit will be ruined but besides that, they will just call you every day and night from 8:00 am to 9:00 pm, 7 days a week.

Answer 5

Nothing happens for a while. They send a few threats, you take them in. Then they sell the debt at a discount to a collection unit in your state of residence. All of this takes about 6 months or more, depending on their ability to track you down. They file a complaint with the local court and you have to go down to the courthouse one day and put on your case as to why you don't think you should have to pay. This usually takes 2 years or so, from A to Z. The actual collection of this takes a long time !

Then they have to prove through various records, SS, DL/ presentation of medical records, copy of your original application,
that they have the proper person in court on a given day. But, they immediately can get it put on your credit report. double set of standards, rules !

Answer 6

First the interest starts to mount up. Even if you aren't using your credit cards any more, the balance will continue to rise at an alarming rate. After a couple of months, how soon is dependant on your balance and your credit card company efficency rating, the phone calls start. First at your home, then at work, if they have your mother's phone number, they'll call her too. They are only supposed to call once a day and during business hours but these people have supervisors that they have to answer to. When your credit card company feels they aren't going to get any results from phone calls and letters, which get more and more threatening and insulting, they sell your account to a collection agency. Now these are really nasty people who seldom follow the rules and remember the guy harassing you is being paid on commission so he WANTS you to PAY. Eventually you end up in court but that's the least of your problems, your credit rating is trashed. You won't be able to get a phone, a loan, rent a car, some landlords won't rent to you if your have a bad credit rating and employment, well, you can kiss any job where you handle money or are in a position of authority good bye. Finally, someone will have the compassion to direct you to a bankruptcy lawyer. This is where you learn that bankruptcy does not ellimate your problems. It costs money to declare bankruptcy. So there you sit with no money and no way to get money and a guy sitting in a three tousand dollar suit telling you how much money you're going to have to pay to make your money problems disappear. Ironic isn't it? In bankruptcy they audit every asset you have, value it, and then decide if you can keep it or if it has to be sold to help pay off your debt. They want an inventory of your household goods and their value, even your silerware drawer. If they think it's necessary, they will come to your home and do it themselves. They take any money you have, you even have to count the change in your pocket. There are court proceedings, most of which you don't have to attend, but your creditors do and they get to express their opinion of you and question where your assets are if you haven't declared items they know you bought from them (which could lead to legal charges if you haven't declared them). Then for the next year (length of time depends on the laws in your area) you are required to declare your income and are only allowed to keep a specified amount, anything over that has to be paid to the court for distribution to your creditors. After one year, your bankruptcy is discharged and you will spend the next 7 years plus (and expect it to be 10 years or more for the average person) rebuilding your credit. Believe me, it's not pleasant. If you are in financial trouble now, go to a credit counseling agency. Many governments sponsor them at no charge to you. They can help you get things straightened around before you end up in too much trouble. Sorry about motor mouthing. I was in accounting for over thirty years and know a good deal about this process.

Answer 7

You would lose any credit that you have achieved that this point and destroy your credit for the future 7 years. Also, eventually the company that you owe will come after you through a subpoena to bankruptcy court and force you to declare bankruptcy, which will ruin your credit for 7 years. Hope you decide against it.

Answer 8

your credit would be bad and it'll show on your credit history. you'll have debt collector's harassing you and you'll have a hard time looking for rentals(house, apartment, condo, etc.), you'll have a hard time making any loans, buying a car, or getting credit cards until you clear your debt and even after you clear your debt, you'll still need to build your credit history. i'm thinking you'll have a hard time for about 3 years after you get your debt cleared depending on how you spend and make payments. please try to avoid this because you never know what will happen in the next few years, your life could change tomorrow. wish the best of luck for you and hope things go well for you.

Answer 9

Sooner or later the credit company will file a law suit against you and your credit will be ruined and you will still have to pay what you owe!!

STILL WANT TO DO IT??

Answer 10

Credit cards are good if you pay them entirely off at the end of each month.If you can't do this then shrewd them.Bad credit will follow U .

Answer 11

hounding phone calls to home and work..possible garnishment of wages..credit report damage, which in some cases will last longer than 7 years..