What happens when you stop paying credit card bills

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Video Transcript:

What happens when you stop paying your
credit-card bills? With overall US household debt increasing by 11% in the
past decade debt is a way of life for many Americans. While don't spend above your means will always be sound advice it can be difficult to put into practice
since household debt keeps increasing while income just doesn't keep up. The
cost of living and rapid growth in medical and housing costs is dwarfing
income growth making it challenging to meet obligations without leaning on
credit cards and loans.

But, if you are overwhelmed by credit card debt you may
wonder what happens if you simply stop paying your credit card bills? Well your
minimum payments will increase because you have to make up the payments you've
missed plus late fees are added making your balances rise even faster your
interest rates can increase the penalty rate after your account become 60 days
past due each month your minimum payment gets larger as more late fees added to
your balance. When the penalty rate kicks in your finance charges will also
increase the result is that your outstanding balance and payments you
need to catch up gets larger every month you're late it gets more expensive to
catch up the more behind you are. Even after you catch up the penalty rate will
remain in effect until you've made six consecutive payments on time.

What happens when you stop paying credit card bills

After that
the interest rate must go down for your existing balance but can remain in
effect for new purchases. If you have multiple credit cards with the same
company those interest rates may increase too, if you wind up in
collections due to non-payment it will stay in your credit reports for seven
years from the date the account originally became delinquent. Unpaid
collections accounts may eventually land you in court or at least with the court
summons. Lawsuits for collection accounts are a common and efficient way for
collection agencies to get payment never ignore of court summons about
debt. These lawsuits can result in wage garnishment a bank levy or lien on your
property if you are struggling with debt we have solutions that can help you
simply fill out our form or better yet call us now and we'll match you with the
best solution for your situation we are A+ rated by the Better Business
Bureau and have helped thousands of people become financially stable and we
can help you too.

So don't struggle any longer give us a call when life happens
we're here for you..

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License: Creative Commons