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What happens if I stop paying my credit card?


What happens if I stop paying my credit card title image?

If you stop paying your credit card, you can wait late
fees, rising interest and a damaged credit score.

If unexpected circumstances, such as unemployment or medical bills, leave you with more debt
than you can afford, it can be hard to keep track of your credit card

It's a fair question: can credit card companies take
serious action if the debt is not guaranteed?

The consequences may seem small at first, but as more
As time passes, the effects of not paying your credit card become more serious. They
It could even affect your future chances of getting a job, lease or

Our guide will guide you through what you can expect to face if you stop paying your credit card.

Late fees and interest
Start to accumulate

The first time you lose a payment, the credit card company may charge you a late fee of up to $ 25 under your rights. Accountability and Disclosure of Credit Card Act of 2009 (also known as the Credit Card Law).

The charge is added to your credit card balance and is subject to interest charges based on your APR.

Credit card companies may charge a late payment fee

After two late payments (60 days), your interest
It will typically increase to the highest penalty APR. The card issuer cannot
lower the interest rate for six months.

Late fees and finance charges will continue to increase your monthly payment, which will make it more difficult to catch up.

Creditors' collection efforts increase

Your creditors will start contacting you in an attempt
for you to pay They will continue to contact you regularly. the
The longer you are without paying your debt, the more frequently you will hear about your billing

Under the Fair Debt Collection Practices Act of the FTC, debt collectors must comply with laws regarding communication with consumers. For example, they are not allowed to call unusual hours. Consumers have the right to ask the collector to stop contacting them. However, these laws only apply to debt collectors and not to their original creditors.

Important rights according to the image of the Fair Debt Collection Practices Act

Credit Score Drops

If you lose a payment in 30 days, wait for the creditor
will inform the three main credit agencies: Equifax, Experian and
TransUnion Since the payment history determines 35 percent of your credit score, this means your credit
The score will fall. If the account goes to collections, it is considered a serious problem.

A low credit score will make it difficult to obtain a credit card, a loan or even a job in the future. It will also decrease your ability to obtain approval for a lease or mortgage.

The account can go to collections

Once you've arrived 180 days late, the creditor
normally cancels the debt and sells it to a
collection agency The term "canceled" does not mean that the debt will disappear.
Not only remains responsible for the amount due, but also additional fees and
You can add interest to your balance.

Discounts can remain on your credit report for seven years. However, the original creditor or debt collector can sue you for the debt before the statute of limitations expires.

When do creditors report a late or late payment?

FICO® scores consider the details of a
lost payment, like how late it was. Creditors generally report late
payments in certain periods of time:

  • 30 to 59 days late
  • 60 to 89 days late
  • 90 to 119 days late
  • 120 to 149 days late
  • 150 to 179 days late
  • More than 180 days late

Can I go to jail for not paying my credit cards?

There is no prison for debtors in the United States, but if a creditor demands it in a court of law and wins a trial, you may be able to garnish your salary or file a lien on your property.

What happens to the credit card debt if I move out of the

Your creditors can still send it to collections or file a lawsuit against you if you have debt after moving abroad. Creditors can pursue any asset you leave in a checking, savings or investment account. If you continue to work for a US-based employer. UU., Your salary could be garnished.

If you move abroad, you will continue to accumulate fines and significant damage to your credit score, which could be problematic if you ever decide to return to the United States.

What happens to the credit card debt when I die?

Credit card debts do not disappear when you die. The credit card issuer will be notified and late charges will no longer be charged. The executor of your estate will use assets, such as your car, home or bank accounts, to pay off your credit card debts. The debt can be transferred to a spouse or other family member if they jointly signed the credit card or live in a community property status.

Consequences of not paying the image of your credit cards

Keep up with your credit card payments

One of the most important factors in your credit score.
It is whether your payments have been made on time or not. Late or lost credit
Card payments can reduce your score, preventing you from getting loans or
Credit cards with better conditions and lower interest rates.

If you see a delay in incorrect payment on your
credit report, our credit repair services can help you eliminate negatives
Articles and work to improve your credit score.

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