what happens if you don't pay your credit card bills?

Question

what can a card company do to you.I want everyone to know that I am not trying to get out of paying my bills but my house payment is more important and my work has went down and I have 3 kids

Answer 1

They will first start to call and harrass you for payments. Harrassing you is actually illegal, know your rights. Some credit card company employees have even been known to intimidate and threaten you by telling you that they will take your house, etc. It can be very stressful on some people. You will also start getting letters in the mail from them that may eventually turn more demending.

Bottom line is that credit cards are unsecured so they can not take your car, house, furniture, etc. Their only recourse is that they can really damage your credit rating.

I would suggest contacting each of your credit card creditors and ask to have the account closed, this will stop interest from accruing. They may tell you that they can lower your interest rate or let you make minimul payments but this is rarely the answer. You will just be throwing money away as you will only be paying the interest payments and a debt will continue to grow. They will eventually close the accounts anyway so it's best if you close them as it'll save you money. Ask for a final bill and then just try to pay a certain amount on each balance if possible or put them aside and concentrate on your mortgage and children.

If you have a credit card with a low balance with available credit it may be a good idea to keep one card for emergency situations (unless you have some savings available) and just pay the minimul amount or even concentrate on paying it off (to save on interst charges).

Once you start earning more income, either try to pay off the balances of the closed accounts little by little or if you're in the position to, contact each credit card company directly and make an offer to pay a % (usually 20-50%) of the balance owed (think about your offer before you call them). If you choose to do this, stay firm on your offer and document everything. Don't send the payment to them until they send you something in writing that they will mark the account paid in full (keep all documentation and proof of payment). Most companies will accept this because they feel that something is better than nothing. They may make a counter offer but stay firm and tell them that it's all you can afford. If they say no than say "thank you anyway" and move on to the next creditor. They'll most likely end up calling you back to accept the offer.

Additionally, in response to what someone else said, credit card companies generally do not freeze bank accounts. They would first need to have a court judgement against you. This whole process costs them money and it is rarely done by credit card companies.

Good luck you you.

Answer 2

If you don't pay your credit card billsthey'll turn your life into a NOT VERY peaceful life. But that's about it, really. Basically from now on you blew it so pay cash only, and when they phone you hassling you for their money just get a thick skin and don't worry about it. lol.

RE:
What happens if you don't pay your credit card bills?
what can a card company do to you.I want everyone to know that I am not trying to get out of paying my bills but my house payment is more important and my work has went down and I have 3 kids

Answer 3

Hi. I have a credit account with HSBC. I think I have already payed a lot but definitely not the entire billed amount. When I lost my job I was not able to pay them then. Now, the interest has accumulated the amount, so I decided to call them and ask for payment arrangement. However, I still can't pay my balance since I can't afford the arranged amount. They said that's the best they could offer. They are saying they will revoke the agreement once I don't pay and the interest will of course incur again. My concern is that they might get through my company and have them involved or whatsoever. Or worse file a case against me, stuffs like that.

Answer 4

Well don't be tricked by the only pay 3 dollars a month scam. Credit card companies love people who don't pay off their bills you could put down the minimum each month just getting by but if you did that for the rest of the time you had to pay off that bill you would never pay it off, and end up paying more than you spent. If you need to make a house payment then first pay your house payment and pay a couple months of minimum payment on your card BUT!!! don't make this a habit. Just a suggestion , try talking to your credit card company.

Answer 5

Not Paying Credit Cards

Answer 6

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RE:
what happens if you don't pay your credit card bills?
what can a card company do to you.I want everyone to know that I am not trying to get out of paying my bills but my house payment is more important and my work has went down and I have 3 kids

Answer 7

Well, this is what happened to me.

Some charged off the debt and disappeared. Two served me with papers and one won a judgment against me. Most of my debts will come off of my credit report in 2009. The judgment will be around for 10 years adding 18% a year until it's paid. I will not be able to buy or sell a house without clearing up the judgment, and of course no one will finance me for anything. Overall, it's not too bad, though. Sure, I have to pay the $5000 judgment, but there are $20,000.00 in bills that I probably WON'T have to pay.

I live in Texas. Now I've heard in other states creditors can garnish your wages if they win a judgment against you, but they can't do that it Texas.

After your accounts get sent to collections, there is a possibility that you can negotiate to pay about 50%ish of the debt in exchange for the creditor removing the debt from your credit report.

Answer 8

For one, the company will keep calling you for their money. If you don't pay your bills, the credit card company will report it and your credit score will drop.

If you're having a hard time paying, you should talk to the credit card company and see if you can work things out. Usually, they will work with you. You can also try to consolidate your bills so that you only pay one amount, but it goes to many bills.

Answer 9

If you don't pay your credit card billsthey'll turn your life into a NOT VERY peaceful life. But that's about it, really. Basically from now on you blew it so pay cash only, and when they phone you hassling you for their money just get a thick skin and don't worry about it. lol.

Answer 10

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Legally a creditor can take the person to court and win a judgment against him. The person then would have to pay the judgment first if he is going to by a house or get a government job. You did well because you will maintain and improve your credit scores. Paying your bills on-time will safe you on interest later on. Your friend will have to wait 7 years or hire a credit restoration company to fix his credit.