What happens when you stop paying your credit cards?

Question

So I've done some research and I know all of the consequences of walking away from credit card debt. But I am not sure what I should do. I know many people have asked this same question and were told to get credit counseling. I've also looked into that and most places charge a fee which I can't afford to pay. I've also looked into debt consolidation loans, which I am not eligible for. I've even called my credit card companies and asked for a lower interest rate and was denied. I can't afford to get an attorney.

This is my situation. I was young and dumb got a bunch of credit cards. I think I have about $4,500 in credit card debt. I try to pay more then the minimum payment monthly but my interest rates have increased & I cannot afford the monthly payments. I also have student loans & a bank loan that I pay on as well. Those loans are obviously more important then my credit cards.

I pay on these cards and the balance never goes down. I don't even use the cards anymore, it doesn't make a difference.

Any HELPFUL suggestions or advice from personal experience is appreciated.

Answer 1

You may need to sell something to pay off your debt or get a second job. If you get a second job, use every cent you earn to pay off those debts. If you can make an extra $500 a month, you can get the $4500 paid off in 9 months.

Answer 2

If you stop paying your credit card debt you can expect to be deluged with telephone calls from your creditors demanding payment. In addition, you can expect that derogatory entries will be made with the credit reporting bureaus against your name. Because of these entries you will find it difficult, if not impossible, to obtain any credit buying from others. The credit cards whose installment payments you continue to make in a timely manner will not be that affected by your failure to pay the other credit card debts. But you probably will not be able to obtain any more credit cards or other credit. Why not contact your creditors and try to negotiate some compromise to resolve this financial problem? If that fails you may want to consider filing for bankruptcy to clear your name of these debts.

Answer 3

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RE What happens when you stop paying your credit cards?

So I've done some research and I know all of the consequences of walking away from credit card debt. But I am not sure what I should do. I know many people have asked this same ...show more

Answer 4

When you stop paying your credit cards assuming that you still owe on them. You go in debt, plain and simple. You need to call the company and ask why the interest rate is not going down and that you can not afford to pay what you are paying for the card. Ask what kind of payment plan can they offer you. Go to a credit councilor is a big start.

Answer 5

Unfortunately for you this problem will not go away. You have to talk to the credit card companies and get them to really listen to you. As a general rule they would rather have some money than none. Do you have a bank account if so make an appointment to see a financial adviser. A bank loan to pay off all the cards would be cheaper for you. If you do not have a bank account see an in dependant advice organisation Here in the U.K we have what is called a citizen advice bureau. They give advice and help completely free of any charge and are not tied to any financial organisation. Hope this help you.

Answer 6

Transfer your credit cards to another credit card with a lower interest rate. I believe Chase Mastercard is pretty good. As for making the payments, enroll in programs that automatically take some money out of your paycheck to pay your credit card. My friend enrolled in that and it worked for her.

Answer 7

Just pay minimum payment. If you don't your credit will go down! A LOT!! So if credit is important find a way.. Get another job

Answer 8

Cancel the cards and freeze the debt..you will still have to make a monthly payment but the interest can be stopped. This will mean no more cards for five years or more, but you will have learned a lesson, got out of trouble and be free of this burden of paying and paying and never getting any nearer to being debt free.
Talk to the credit companies first of course, tell them what you want done and how much you will be able to pay once the debt debt is frozen...and make sure that you are both talking about the same thing they may threaten you with court action but it will cost them less to agree to this arrangements than to chase you through the courts.

Answer 9

You need to pay off these cards, your credit will go down for 7 years if you dont pay, that means you cant get anything, a car, a house nothing 7 years is a long time. Get a loan from a family member pay them off then cut them off! Get a second job pay them off!!

Answer 10

You can file for bankruptcy or try an online credit card repayment plan. There is one called Care One . You could take a look at it.
Good Luck

Answer 11

maybe should have thought about that before getting credit cards. i am 27 and never had one. bless me!!! anyways ....my sis is in over 30,000 in cc debt, and she pays a low payment ....60 bucks a month and it goes towards all the cards she owes on. credit card counselling helped her with that. look into it. the simple fee for starting is nothing compared to never being able to get a home, and never having a car, etc.......
good luck!!