Friday, 24 September 2021

What happens when you stop paying credit card bills

What happens when you stop paying credit card bills
31 Jul

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 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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