There are many things that happen when you stop paying credit cards. If you have come to this article and to look for more information on what would happen if you do not pay your credit card, or are looking to get more information on the subject for future use pertaining to your credit card, then this article will give you what you need to get an answer to the questions that you might have when it comes to what happens if you stop paying credit cards. You will be provided with a detailed list of the penalties that come with this action byt also what good can come out of it if you handle it the right way.
Stop paying credit carrds – Penalties
- There are many things that will happen when you stop paying credit cards, the first one is that it will total ruin your credit score. Credit cards can be excellent ways to build your credit if you pay on time every time, but if you flat out stop paying, each month you don’t pay your credit score will get lower. This can effect multiple areas of your life, like renting a home, buying a car and even applying for a new credit card.
- Along with be hassled by your credit card company every day with calls, when you stop paying credit cards what can happen over a short period of time is that the payment will come out of your work check or any check that you are earning money with that is on record. When this happens, your monthly payment on what you are relying to make your bills on will be cut by a fraction, and will go towards what you owe making it tough to budget on a lower monthly work check.
- If by any chance that you are considering bankruptcy as an option, which do try to avoid at all costs, if you don’t pay your credit card each month, your bill will eventually be transfered over to the IRS and when that happens you can’t declare bankruptcy. When it gets there you have to pay it no matter what.
Stop Paying Credit Cards – Benefits
There are also some great things when it comes to the suject of stop paying credit cards if you go about it in a smart way if you really for some reason or another can’t afford to make your payments, here are the positive parts:
- A great option for when you want to stop paying credit cards is to consider a debt setttement with your credit card company. Or it has already been transferred to a collection agency or the IRS the same option can be available. This is where the company that has your debt will settle for a lot lower grand total than you originally owe. This part is great because the obvious part of you getting to pay off your debt for a much lower total, but in order to get to this point you would have already missed multiple payments which can really hurt your credit score.
- Also if you stop paying credit cards, know that you have the right to take a stand and tell them to stop harassing you or you will take legal action. This will usually scare them off long enough to get them off your back and figure out the next step.
Stop Paying Credit Cards – Conclusion
As you can tell, when you stop paying credit cards many different things can happen that are both positive and negative. With the negative out weighing the possitive it is highly suggested that you make your credit card payments each month avoiding many things that you don’t want in your life, but if you do, there are still some options that can make the stop paying credit cards process a little more painless.