This is a question that every credit card holder fears the most. Not knowing what will happen if they fail to pay the bills might be enough to haunt the credit card holders to make them panic.

But the truth is that there is not much that credit companies can do to make you pay. First of all, they will start to call and harass you for payments. Keep in mind that harassing is actually illegal, and by knowing well about your rights, you can set the line after which you can legally report about the company’s harassment.

There are certain credit card companies that have employees especially trained to threaten the client by telling them that they can take over their house, etc. So be prepared to face some harsh talks, it can become very stressful for some people. You might also start getting some demanding letters in the mail from them.

But the thing to keep in mind is that, as credit cards are unsecured, they can not take away your car, house or furniture, etc. The only thing they can really do to harm you is damage your credit rating.

What you can do is, first of all, contact each of your creditor and ask to have your account closed. This will stop any more interest from accumulating any further. Although they may try to stop you by offering you a lower interest rate or allowing you to make minimum payments but this will not solve the main issue. You will simply be throwing away more money and paying the interest payments, with a debt that will continue to grow.

When you become financially stable, then process by either trying to pay off the balances of the closed accounts little by little or by offering to pay a small percentage % of the balance owed. However, don’t send the payment to any company until they send you something in written that they will mark the account paid in full (remember to keep all documentation and proof of payment).

Most of the companies will accept this offer as they feel that something is better than getting nothing. Also, it is important to know that credit card companies generally do not freeze bank accounts. In order to do this, they would first require a court judgment against you. The whole process costs them a lot of money and thus is rarely done by any credit card company.

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