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Thread: What will happen if I refuse to pay my credit card?

  1. #1
    Kevin N
    Yahoo Answers!

    What will happen if I refuse to pay my credit card?

    They have upped my finance charges to where I can never pay it off anyway. My minimum payment (which I now cannot afford) would only serve to pay for now huge finance charges every month. What is going to happen if I don't pay it off. I'm a college student and I own nada. I called and they won't lower it. I can't afford it and have no incentive to even attempt to pay it off since it will never end since they've increased everything. So if I just stop paying it, what can they do?

    Obviously, I know I can't use the card anymore, but what else can they do?
    I know jail isn't an option for them because there is no debtor's prison in America.
    I understand that unless you have a job, debt consolidation isn't an option. I'm a full-time student and I am not dropping out of school or taking a job and trying to keep my grades up just to pay off this credit card.

  2. #2
    Yahoo Answers!
    Don't pay it until you get a job. When you get a job call them back the work out a payment plan. It will stay on you credit report for ever. It could be years before you began to pay it off. You will pay much more than you owe that way. By all means pay it. Credit is very important. Everybody looks at it. You want to stay at or above 700

  3. #3
    Yahoo Answers!
    well it can hurt your credit and they could possibly take you to court

  4. #4
    Yahoo Answers!
    If you are not going to continue using the card close it. This way you can make payment arrangements with the company to pay it off. If you keep the card open, and you don't pay it it will just keep assessing fees until they can't charge you anymore, and then it goes to collections and is on your credit report until you pay it off.

  5. #5
    Yahoo Answers!
    They can get a judgement against you for the amount, then garnish your wages to collect what you owe once you finish school and get a job, or seize your assets once you have some. Or if you are working now, they can garnish those wages.

    It will also show on your credit, so you'll have a hard time getting another credit card, a car loan, a mortgage, or any other type of loan.

  6. #6
    Laura J
    Yahoo Answers!
    Kevin, call a financial service accredited by the State or government, like By Design financial services.

    This is very important, because what they do, is arrange a program so that you pay it off every month without high finance charges.

    It is an automatic payment plan with low interest and of course the promise of not using any credit cards.

    That way, you can focus on your prosperity, because ruining your credit at this point.... Is really not a such a good idea when you need a car loan. Its really embarrassing to be refused a loan because your FICO score is bad.

    Another option is to claim bankruptcy. The catch is that you cannot make more than a specified amount of money for 6 months and or cannot use a credit card for up to 18 months.

    Its different in every state or country.

    Just don't not pay it. Pay the minimum until you get either option completed. It will help you to become very responsible with money and not feel in debt, weak, and poverty conscious.

    You want to become financially healthy, and feel good energy in your life. Just be responsible and do the right thing.

  7. #7
    Yahoo Answers!
    The best thing to do is get involved with a debt consolidating agency. They can help reduce your payments - you can't use the card now anyway - and stop the collection calls.

    If you don't pay, they will ruin your credit and harass you for about a year - then they will probably forget about you, but your credit will be ruined until you fix it. If you don't want to get involved with a debt consolidator, call your credit card company and tell them that you think you will have to because you don't see any other options. They will likely give you a settlement amount and work with you.

    Remember though, that once you go into collections, very often the credit card company will recoup some of their loss through their own insurance protection. The settlement they offer will mostly likely be what didn't get covered or an attempt to make some additional money off of you.


  8. #8
    {z !!?}
    Yahoo Answers!
    Jail. Horrible credit, everything you do will end up costing more, insurence ect.

  9. #9
    Yahoo Answers!
    Your credit will be ruined and any future wages will be garnished. You need to get a payment plan worked out.. a mistake here will follow you the rest of your life.

  10. #10
    Yahoo Answers!
    Sue you. Offer a payment plan. Ruin your credit. The bill will just keep adding up either way. It's not something that's going to go away just because you won't pay.

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