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Creditors what happens if I cant pay my Credit Card bill

Published on January 15th, 2019 | by Chris Holmes

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What Happens If I Can’t Pay My Credit Card Bill?

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Do you get the sinking feeling just by thinking about the credit card bill because you know there isn’t enough money in your bank account to even make the minimum payment? Do you often hear yourself saying I can’t pay my credit card bill?

There can be a variety of reasons for not being able to make credit card payments. It could be because you lost your job and are currently unemployed or you had some unexpected expenses in the past few months. It could also be because you are struggling to pay multiple bills with your limited salary or you are negligent and don’t keep track of your statements.

Are you like Rebecca Bloomwood – the lead character of Sophie Kinsella’s Shopaholic Series – who couldn’t help the urge to splurge despite being aware of her poor financial situation?

If you can relate to the fictional character, you better take control of the situation before it gets out of hand because the repercussions of not paying your credit card bill are far more serious in real life. And ignoring the problem will only make the situation worse.

The sooner you make peace with the reality and deal with it, the better your chances are to lessen the impacts of late or missed payments.

What are the Consequences of Not Paying the Credit Card Bill?

Many who are struggling to pay credit card bills or who can’t pay with credit cards want to know the possible consequences.

While the repercussions vary depending on every person’s circumstances and the policies of their credit card providers, here’s what you may have to face if you can’t pay with credit cards:

You will Have to Pay Late Fee

If you are unable to pay your credit card bill by the due date, your credit card provider may apply a late payment fee on your statement.

If you want to avoid these extra charges, try to pay at least the minimum amount on your bill.

You will have to Pay Interest

Missing a credit card payment means interest will be charged on all the transactions you made during that period. It may seem minimal in the beginning, which is why many people ignore it, but the interest continues to increase with time and could quickly add up.

You May Not Be Provided Interest Free Period Anymore

Many credit card companies provide interest free days to their customers. However, they are only provided to people who pay their bills in full and on time.

This means even one late payment can remove you from the list of customers who get interest free days. In order to become eligible for interest free days again, you will have to pay at least two consecutive bills in full (the policy may vary across companies).

Your Reward Program Privileges May Get Affected

Being a credit card user, you must be aware of the reward program privileges credit card companies provide. However, do you know that the card providers also hold the right to freeze or cancel the program and even the points that you have already earned if you can’t pay credit card bills? Some even do this if your payment remains due for more than 40 days.

Many companies specifically mention this in the terms and conditions that most of us never read.

You Could Receive an Official Default Notice

Struggling to pay credit card bills due to poor financial situation? Most of us have been through similar situations at some point in life. However, this does not mean that you stop paying the bills completely and let the debt grow.

While you can get away with not paying the bill once or twice (by paying the late fee or interest), if you continue to do so, you will face some serious consequences. Your name on the defaulter’s list is one of the possible repercussions.

Once the company classifies a customer as a defaulter, an official notice is sent to the customer. This is a situation that you should avoid at all cost because it can cause serious harm to your credit history, which will then greatly reduce the chances of getting new loans approved. Even if you are able to secure a loan, the interest rate would be very high.

Your Case may be Forwarded to a Debt Collecting Agency

If you can’t pay credit card bills for a long time for whatever reasons, your case may be passed to a debt collection agency.

The involvement of a debt collection agency will make the situation even worse because they have different approaches to recover the debt, including the use force. Getting your case transferred to a debt collector could be your worst nightmare.

Final Word

While there are some serious consequences of not paying your credit card bills, they are usually imposed on customers who don’t pay the bills for extended periods.

While you should always try to pay at least the minimum amount, do not get worried or ignore the situation if you have missed a payment for any reason. Get in touch with your card provider immediately to find a solution.

While you should always try to pay at least the minimum amount, do not get worried or ignore the situation if you have missed a payment for any reason. Get in touch with your card provider immediately to find a solution.

Many people end up having poor credit histories and their names in the defaulter’s list just because they ignore the situation or delay future credit card payments when they have missed one.

Get help now

Every credit card company has policies with regard to late payments and defaulters. Do not rely on the information that your sibling, friend, or colleague provides. Contact your card provider to discuss the matter or consult a financial lawyer. For some useful information, checkout this article on Can’t Pay My Bills.

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