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| Debt Disaster Relief E-Book |
| What happens if you don't pay your bills? |
| The good thing about credit cards is for the most part it is unsecured debt. Unlike a car loan there is nothing to repossess. There are a few electronic stores whom I have heard of repossessing items. For the most part if you don�t pay your credit card bill you will get a collection call. And then many. You will be assessed with late fees and usually the company will raise your interest rate. Some rates, called default rates, can go upwards of 30%.
As you miss some payments, your interest rate will increase and then your finance charges will skyrocket. It is very possible that your balance could be pushed over the credit line. In which, then, you would be assessed with over the credit line fees. The best thing to do is if you know you are going to have a problem is to call your credit card company and see what they can do to help you. Often times they can set you up on payment arrangements or in some instances let you forgo a payment. Be aware that your account will be considered past due if you don�t send in the full minimum payment required as requested on the credit card statement. Anytime your account is past due the credit card company can close your account. Credit card companies can actually close your account without notice for a host of other reasons as well. At the company I had worked for we started closing accounts if you went default with other companies. This would be something that you would find in your terms and conditions, and companies often update these terms. If you go quite some time without keeping up on your payments then depending on the state you live in the company may be able to garnish your wages. So for the most part, the worst is a host of fees, a higher interest rate, collection calls, and the possible closure of your account. |