What Are the Financial Consequences of Not Paying Credit Card Debt?

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In United States, obtaining a credit card is a very simple thing for most of the Americans, including college students.
Due to this reason, there are many irresponsible cardholders who refuse to make payment for their outstanding balances after swiping their cards.
Seriously speaking, for people who do not make payment for their credit card, are they ready to face the music? Basically, for people who are having financial difficulties as well as for people who intentionally refuse to bear their responsibility on their outstanding balances, there are 4 possible consequences they need to face.
  • In common, the cardholders are required to make their monthly payment promptly.
    If they fail to pay off their outstanding on time, the banks or the card providers will start sending them reminder letters.
    If there is no action taken after the reminder letters, the creditors usually start to contact their debtors through phones.
    The frequency of the phone calls will increase if there is no payment from the debtors after one month.
    At the same time, late fee and finance charges will be incurred.
  • If you still miss your payment after 30 days, there is high possibility for you to receive threatening phone calls from your creditors or debt collection agencies.
    Besides, your creditors will definitely report this matter to the credit bureau and your credit report will be affected.
    Don't underestimate this effect.
    Your credit rating is reduced and this bad record will be retained on your credit file for 7 years.
  • The card providers have full right to cancel your cards if you fail to pay your credit card bills for 3-6 months.
    The account closure will be reported to your credit file.
    At the same time, your outstanding balances will be increasing from time to time due to accumulated late fee and interest.
  • Although your creditors are unable to land you in prison, they still can sue you.
    When your past due is 6 months and above, your creditors can opt to file a lawsuit on you.
    They have the right to demand for payment.
    The worst scenario you may face is being sued bankruptcy.
    If you are still working, your monthly income will be garnished to pay off your debt.
For people who fail to pay off their credit card debt, their creditworthiness is indeed badly affected and it will make their loan application process more difficult in the future.
If you really can't afford to make payment, look for positive solutions such as debt settlement, debt consolidation loan, credit counseling service, etc.
Don't try to run away from debt.
You will be a big loser.
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