Not Paying Your Credit Cards Can Have A Disastrous Effect

What might happen if you are not paying credit cards on time or not at all?

It seems that being in debt has simply become the way of life for many people. Debt can be very worrisome, and can really affect your life in a bad way. No matter where the debt came from in your life, whether it be from shopping, school loans, or what have you, non payment of credit card debt when you’d like can be very frustrating.

Perhaps you’ve wondered what might happen if you simply stopped paying; simply started not paying credit cards anymore. Well, you may want to look at paying the minimum before you try anything that drastic.  Generally a minimum payment is easily handled, either by cutting back on unneeded expenses, or perhaps getting a part time job if need be, at least temporarily.   You see, by doing so, you’d be able to keep from trashing your credit history, and your credit score. This can be very important for your financial well being.

But if there is no way to even pay the minimums on your cards anymore, you must be prepared to contact your creditor immediately.  one thing that may be said for the credit card companies, they are for the most part willing to work with you if you have an upcoming financial difficulty, say a layoff for example. But you must keep in touch with them!

Credit card issuers usually are not out a lot of money if you are not paying credit cards.  In fact, they are insured against such losses. Usually up to around 75%.    The remaining debt is then written off on their taxes.

Once a creditor has decided they are not going to see any payment from you, they will unload your debt on to a collection agency for much less than the debt is worth.   Your creditor has basically given up and now no longer has to worry about getting paid.  But that doesn’t mean you’re off the hook as far as paying goes. Rest assured the collection agencies will work very diligently to get paid.

Here are a few things you can expect to happen if you’re not paying credit cards in regards to collection agencies:

Your credit history will take a huge hit. Your score will plummet.

You can expect to have a rough ride if your credit is trashed.  It will be nearly impossible to get a car loan or a mortgage for a few years, and then it will be at a very high interest rate.

You may get sued.

You may know someone that this has happened to. If so, you know how unpleasant it is.  Creditors and or collection agencies have been known to use the courts to get paid.  This can have disastrous results on your life.  Credit card companies have very deep pockets to hire good lawyers.    Bankruptcy is always an option, but probably the worst case scenario.

You might have your wages garnished.

Although rare, it does happen.  Garnishment simply means that your employer will send your wages to your creditor instead of you.  This is why it is important to at least pay the minimums.

This is just a sample of what you may expect for not paying credit cards.