Non Payment Of Credit Card Debt…Happening More And More

 

Ok, so you can no longer afford to pay anything on your credit cards. What typically happens with non payment of credit card debt? Well, it really isn’t pleasant, but it may not be as bad as you imagine either. Let’s take a look at a non payment of credit card debt scenario.

How Many Maxed Out Credit Cards?

Let’s say a person has 5 maxed out credit cards. The minimum payments have grown to such a point that he cannot even pay the minimums, and he does just that, pays nothing. What can our friend expect to happen next?

First off, he’ll likely receive a few polite phone calls from his creditors, and perhaps some letters reminding him that he forgot to pay. This may go on for a month or two. As time goes on, the letters and phone calls will become more frequent and threatening. He’ll her scary things like: “a serious mark on his credit.” He may receive calls from his creditors offering a payback plan, where the interest and fees will be waived if he’ll just pay up and get current again.

As the account gets closer and closer to charge off, the phone calls will accelerate to a point where he is getting them every couple of hours, and even if he explains the situation to one rep, another will call later in the day and know nothing about what he explained to the other rep.

Collection Agencies Start Calling

Eventually, the creditor will send the account to an outside collection agency, and the phone calls will start over again. Many times, the collection agencies will be pretty ruthless, and start calling our friends family and neighbors. This will go on until our friend is able to settle the account for a percentage of the balance or he gets taken to court.

The order of events in a non payment of credit card debt scenario is fairly uniform, but by no means written in stone. Each case will have its similarities and differences.

 

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