I recently closed my credit card and moved to a different state but i still have a $1000 balance to be paid off. What are potential consequences if i leave it unpaid. Does the interest build up infinitely?
2006-10-26 04:19:29 · 8 answers · asked by bladekl 1 in Business & Finance ➔ Credit
Since you closed your account interest will not build, but the company will send it to collections for non payment. If you can't afford to send them the entire payment, you can send them something to get the amount down. Believe me, I have done the same thing.
2006-10-30 02:08:05 · answer #1 · answered by hys7768 2 · 0⤊ 0⤋
I don't think you have really closed the account. Generally you cannot completely close an account until the balance is paid off. If you leave it unpaid, there is going to be a heck of a lot of interest and penalties to pay! Try working up a payment plan with the loan holder (which is basically what you do when you use a credit card, is basically getting short term loans). I would definitely not ignore it, because it will haunt you forever. Even if you don't think it will, it will. Plus, you will damage your credit and that will make it hard to do anything.
2006-10-26 11:29:27 · answer #2 · answered by Curelover 2 · 0⤊ 0⤋
Interest builds up until the statute of limitations expires. You could expect to be sued. The credit card company would write off the debt but sell it to a third party who would sue you to collect it. You could expect the delinquency to be reported to credit bureaus. The default on the balance could trigger defaults on other credit cards owing to the "universal default provisions". This could result in much higher interest rates. You would be much better off dealing with this if you can.
2006-10-26 11:26:36 · answer #3 · answered by DLeibowitz 5 · 0⤊ 0⤋
Simple: 7 Years of Bad luck (credit-wise) You will regret not paying your bill...maybe not now but for the next 7 years NO one will do business with you, cars, credit cards, a home..ALL GONE!!
Do the right thing and clean your mess up!
2006-10-26 12:29:14 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes, the interest builds indefinitely. The account will go to collections, you will be summoned to court and you will have to pay.
If you need to, take out a loan and pay it off now.
2006-10-26 11:22:40 · answer #5 · answered by Phoenix, Wise Guru 7 · 0⤊ 0⤋
I doubt it would go to court, however it will go to collections and for $1000 I don't think its worth going on your credit report. Just call them and ask this question.
2006-10-26 11:28:27 · answer #6 · answered by B ! 1 · 0⤊ 0⤋
get some extra cash here....
http://www.freewebs.com/cashmail
2006-10-26 11:46:04 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Pay now or Pay more later... they will find you..
2006-10-26 11:27:17 · answer #8 · answered by Alisha S 3 · 0⤊ 0⤋