I have no money even to service my minimum payment for my credit cards. What will be the consequences?

Question

Will the banks file a bankruptcy act against me? How soon will that be?

Answer 1

Banks don't file bankruptcy against you. If you decide that bankruptcy is your only option, then you need to see a lawyer and file yourself.

The banks are just going to continue harassing you for payment.

If you can't afford your minimum payment, then you need to call each of then credit card companies and tell them you are trying to make payments but you are in over your head and work out a payment plan with them. Ignoring it is not going to make it go away. Pick up the phone and call them. They will likely reduce your payment to what you can afford. However, you will also need to get the interest rate reduced or you won't really be paying down the debt.

Call them
Ask for a lower interest rate
Ask for a lower payment

And don't ever charge more than you can afford to pay for again.

I don't often recommend credit counseling because they don't really do anything that you couldn't have done yourself and they charge you a fee to do it. However, if you're considering bankruptcy anyway, you will have to go to counseling anyway before you can file. So, I would suggest you find a good credit counselor and get this under control and get on a budget. It will only get worse if you don't work on it now.

Good luck.

Answer 2

NO if you do not make the minimum payment your interest rate goes up high, and it will keep adding up a few months sometimes longer , you have to hire a lawyer to get it stopped and to file bankruptcy , then all of your money goes to the lawyer to pay your bills ,and you get what is left after wards , or it will go on a while then the credit card company can declare a charge off , which means from the date of the charge off until seven or more years you can not even borrow a dollar on credit , the best thing to do is call them to see if they can do a deferred payment plan , some will even allow you to go up to a year or two before you have to resume payments , they will work with you after all they want their money , call them to see what options you have , plus in a bankruptcy , some have had to give up homes to downsize , and some have to give up their cars for a cheaper one ((court ordered)) call the card company and work something out it would be the best thing to do ... then once it is paid , leave those d*mn things alone

Answer 3

At CREDIT-SOLUTIONS.INFO- you can find the best financial solutions

RE I have no money even to service my minimum payment for my credit cards. What will be the consequences?

Will the banks file a bankruptcy act against me? How soon will that be?

Answer 4

If you miss payments, banks will try to collect. They do have many options to collect, each state is different. Bankruptcy is your choice, not the banks and should be your last resort. Bankruptcy, in my opinion, is only good and useful to save a home from foreclosure.
You should try calling the bank. They may help, they may not. Every circumstance is different. If you do choose to call a company (consolidation or settlement) to help, make sure you do your research. Know the credit effects of your different options. Remember, when you speak to companies about your options, you are talking to a sales person, their job is to get you to sign up for their service. Also, don't be fooled by "non-profit organizations" or "christian companies". Do your own research and find the best solution for you. You do have many options... the worst thing that can be done is ignore the situation.

Answer 5

If you do not have enough money to pay your credit cards a minimum payment, as long as you contact your creditor, they should be able to work out a negotiation with you and let them know what is going on and when you're planning on paying it so that they wont take it to a collection agency. it depends on each creditor on how long you have until it shows up on your credit report but it can be anywhere from 3 months to 6 months from now that they might decide to delinquent your account and have a collection agency handle it and contact you.


be safe and let the creditor know whats going on and they will be able to be flexible with you. don't let it get too far behind it will ruin your credit when you go and try to apply for another one.

i wish you the best of luck!!!!

Answer 6

Banks don't usually take such drastic action immediately, if u have problem with your min payment, give them a call to negotiate with them on how u can clear your outstanding debts. If talks break down or u are unable to do it on your own, go to Credit Counselling and they will be able to help u to negotiate with the bank, they have the expertise there to help in the negotiation process and will help a lot.

Answer 7

I have placed this in the source box. There is a wealth of information there and a great free debt management software program. I bookmarked the site as I return to it often for the advice it offers. I hope this helps you.

Answer 8

The consequences will be severe.

You will live a life of shame and poverty, without the ability to buy a house. You will be forced to wear the Scarlet D (deadbeat).