What will happen if I refuse to pay my credit card?

Question

They have upped my finance charges to where I can never pay it off anyway. My minimum payment (which I now cannot afford) would only serve to pay for now huge finance charges every month. What is going to happen if I don't pay it off. I'm a college student and I own nada. I called and they won't lower it. I can't afford it and have no incentive to even attempt to pay it off since it will never end since they've increased everything. So if I just stop paying it, what can they do?

Obviously, I know I can't use the card anymore, but what else can they do?

I know jail isn't an option for them because there is no debtor's prison in America.

I understand that unless you have a job, debt consolidation isn't an option. I'm a full-time student and I am not dropping out of school or taking a job and trying to keep my grades up just to pay off this credit card.

Answer 1

Don't be a deadbeat---you got the card, YOU charged the goods, YOU PAY FOR THEM... why the HECK should the rest of the bill paying taxpayers suck up YOUR DEBT... and here I thought college students were supposed to be SMART!!!! Part of what is wrong with this country is the fact that the current YOUNG GENERATION refuses to take RESPONSIBILITY FOR THEIR ACTIONS....... they drink, they drive, they KILL, they get credit anytime the WANT and then destroy it by not paying for the items they charge... WHICH leaves the rest of us to PAY out of OUR POCKETS for YOUR MISTAKES.... I think the credit system in this country STINKS.... it is handed to kids like CANDY because the credit companies EXPECT them to default which eventually makes the credit card companies richer and richer with their higher finance charges.... KIDS should NEVER be given credit cards.... heck most ADULTS should not be given credit cards... case in point.... If you purchase an item on a credit card for say $100 and DO NOT MAKE ANY PAYMENTS---lets say on a CAPITAL ONE CARD..... you are charged $39 PER MONTH for the late payment charge PLUS finance charges of 18% on the unpaid balance---so at the end of a YEAR of non-payment, you will owe over $600 for that $100 purchase... and they WILL go after you... and also, if you ever get to see your credit report, the NON-payments or late payments are ALL listed INDIVIDUALLY on the report and can sit there for over 7 YEARS.... making it totally impossible for you to get credit again until it is PAID and off your report... PLUS, get out of college, get a job, find a house... OOPS,, can't buy the house---your credit SUCKS... no one will give you a loan---Oh well explain THAT to your wife and kids...!!!!!

Answer 2

Kevin, call a financial service accredited by the State or government, like By Design financial services.

This is very important, because what they do, is arrange a program so that you pay it off every month without high finance charges.

It is an automatic payment plan with low interest and of course the promise of not using any credit cards.

That way, you can focus on your prosperity, because ruining your credit at this point.... Is really not a such a good idea when you need a car loan. Its really embarrassing to be refused a loan because your FICO score is bad.

Another option is to claim bankruptcy. The catch is that you cannot make more than a specified amount of money for 6 months and or cannot use a credit card for up to 18 months.

Its different in every state or country.

Just don't not pay it. Pay the minimum until you get either option completed. It will help you to become very responsible with money and not feel in debt, weak, and poverty conscious.

You want to become financially healthy, and feel good energy in your life. Just be responsible and do the right thing.

Answer 3

The best thing to do is get involved with a debt consolidating agency. They can help reduce your payments - you can't use the card now anyway - and stop the collection calls.

If you don't pay, they will ruin your credit and harass you for about a year - then they will probably forget about you, but your credit will be ruined until you fix it. If you don't want to get involved with a debt consolidator, call your credit card company and tell them that you think you will have to because you don't see any other options. They will likely give you a settlement amount and work with you.

Remember though, that once you go into collections, very often the credit card company will recoup some of their loss through their own insurance protection. The settlement they offer will mostly likely be what didn't get covered or an attempt to make some additional money off of you.

Peace!

Answer 4

They can send you to collections and eventually they can sue you. Plus, not paying will send your credit into the lowest, possible score. Low credit scores mean you won't be able to apply for any other credit cards, any car loans, a house, any sort of financing for anything - furniture, any rented apartment, department store credit cards, anything with financing. I really urge you not to go down this road.

If possible, you need to get a job or get someone in your family to help you pay your minimum payment ON TIME for a year. After a year, then I bet the credit card company will lower your interest amount so you have a better chance of paying it off.

Unfortunately, credit card debt is an awful black hole. You need to pay your way out. All the credit card company will want to protect your credit and get them to work with you is to pay at least the minimum payment on time all the time.

I hope you realize how important this is. Credit card companies report your payment habits to the credit reporting agencies. ALL financial institutions look at this information before they give you any money.

My best advise is to cut up the credit card, stop using it, start paying that minimum on-time no matter what.

Answer 5

They can call in a collection agency to hound you for the rest of your days.

They can sue you.

It will ruin your credit.

When you got the credit card you agreed to pay your charges on it, so technically by not paying you are guilty of a crime.

Ordinarily if they increase your finance charge, it is for new charges only. Your existing balance should still be at the old rate. If you can no longer make payments, you might consider calling them and telling them that. You might get them to waive the finance charges in exchange for regular minimum payments. They would rather get some money than no money.

There are also consumer credit organizations that you can go through that can help arrange payments with companies that your budget can afford.

As a last resort, you could declare bankruptcy, but then your credit is shot for about 10 years until it clears from your record.

Answer 6

Well what will happen is that in about 5 or 6 years, you'll want to buy a car or a house and won't be able to because your credit score is in the low 500. You will whine and cry and complain that no one will give you a loan even tho you make really good money.

And those of us who pay out debts, will shake our heads and say "there's another one".

The judgment they are going to get when they take you to court is good for 10 years and can be renewed. That's another ding on top of the default.

Your car insurance will cost more -- they use your credit score to calculate risk. You won't be considered for some jobs -- employers review credit reports as an indicator of your responsibility.

Answer 7

Let me guess the rates went up after you where late with a payment, or overlimit. Pay on time for 6 months and they will go back down.. What can they do? Ruin your credit for at least 7 years GO to court and have a judgment filed against you, and yes employers do check your credit rating as part of the hiring system. Its not what you have now, it is what you want in the future that is affected

Answer 8

Just hold the phone GRASSHOPPER. I have a brother who is 50 years old with a paid up house, and 2 new cars and boat. He took early retirement and has 80K coming in a year. He owes over 6K a month in credit card bills. He just stopped paying all of them. He plans to pay cah for any needs and lives comfortable. Creditors can do nothing. They write it off after 6 months of non payment. Sure he can get no credit and his credit score is in the crapper. Why should or would he pay all his income for bills. He is living life. Hop away naysayers

Answer 9

Well first you will get these reminders of past due amount. You will continue to be charged the finance charges. And the phone calls will begin. As early as 8am and as late as 9pm every hour. Then collection notices will show up. If you continue to ignore all this. Then they will eventually send it to a collection agency. Which will use scare tactics to try and make you pay. Finally a lawyer will get it and try to collect on it. And if that fails they will send you a letter from your local district court. Suing you for what is owed. Your best bet is work a deal with credit card company or collection agency if it has gotten that far. I pay 100.00 a month on no intrest charged debt.

Answer 10

If you refuse to pay:

First, it ruins your credit rating. Second, they sue you. Third, when you graduate and get a job, they garnish your wages. It does not matter that you own nothing now; you will own something eventually, and they can take it then.

Your best option is to transfer the balance to a lower rate card that you can afford to pay. Continue to make the payments on the existing card until the transfer is complete. If you stop paying the existing card, then you will not be approved for the new card.