Due to financial difficulties, It has been 1 yr since I stop making payments on my credit cards?

Question

What impact will it have on my credit history?
How to avoid the debt collectors calls?

Answer 1

The impact on your credit history is that every one of them has reported 12 months of late payments that will be on your credit score for the next 7 years. Your credit score is probably somewhere around 500, which is incredibly low and you wouldn't be able to get anyone to loan you anything. Not to mention, insurance companies check your credit score so you'll pay a higher premium for insurance. Employers also do a credit check, which could keep you from getting a job.

You avoid the debt collectors calls by paying the bills. At this point, since you're a year late, you've also run up a ton of late fees and interest so your best bet is to call them and see if you can make some sort of arrangement to start paying them back.

Creditors used to write debt off and sell the debt to collection agencies. That doesn't happen as much anymore. Now they sue and get a judgment. A judgment can stay on your credit report for 20 years.

Answer 2

Don't avoid the calls. Try and settle with them or make payment arrangements that you can afford. See if they will accept assistance from a debt consolidation.

In most cases, these debt collectors are willing to work with you as most are paid on commission and want you to make some kind of settlement.

As far as the impact, you've done some damage. Likely most of the accounts are in charge-off status and listed as a lost debt. If you ever want a nice car, a house or a decent apartment in the near future do your best to take care of these issues now, you will regret it later.

Answer 3

Your credit is pretty bad. It sounds like you don't have a home or car, or it would have been foreclosed/repossessed.

I don't see you getting credit except at 30% interest rates. I mean, you haven't paid any of your creditors in a year.

Take a deep breath and honestly look: Can I pay these off? If you can, take the call, work out a repayment plan and do it. If you can't, see a lawyer and file for bankruptcy.

Either way, your credit is pretty bad. If you pay off the debts, your credit will be much better after two years. If you choose bankruptcy, it will count against you for seven years.

Answer 4

It's been a year, so the damage is already done.

Your credit score has dropped significantly. The credit cards will remain on your credit reports for 7 years.

If the credit card companies charged them off, the debt collectors will be ringing you any day, all day long. I don't think there is any way to avoid them.

Answer 5

You are still liable for money owed on your credit cards and collection agents don't go away. Even if you can arrange a modest repayment plan (eg: $100.00/month), this is far better that doing nothing. Ignoring the calls and ignoring your credit card bills in the mail won't help. If you really are financially destitute, your best option may be filing for bankruptcy (which will stay on your credit rating report for seven years). Credit ain't something to be toyed with.

Answer 6

1. Your credit will be terrible for 7 years from the day your last account went delinquent. If you owe a whole bunch of money, and the creditors sue you (an iffy thing) then it will be 10 years from the time that the judgement is filed that your credit will be awful.

2. Change your phone number and get it unlisted. Then send "cease and desist" letters to all of your creditors. Preferably don't use a landline phone, only a cell phone or VOIP..

Answer 7

A whole year, and you have done NOTHING? You should have at least called your creditors and explained your situation and came to a livable agreement. There is no way to avoid the hole you have dug your way into, and I am sorry to say, you deserve the calls from creditors and debt collectors. I am sorry that you have had financial difficulty, but that does not excuse you from your responsibility.

Answer 8

very bad impact on your credit history. you can not avoid collectors calls unless you do not have a phone.

Answer 9

This will trash your credit. You could have no phone to avoid calls or have caller ID or simply let the machine get it. If you are a homeowner, check out the source website and their free evaluation form; perhaps they can help. Good luck.

Answer 10

Have you considered consolidating your bills so you can manage one payment a month so you're not so overwhelmed because bankruptcy will do a whollop on your credit history.