Anybody with credit cards know the drill about paying credit card bills. Some people get so caught up in the web of credit debts, that they are not able to pay their credit card bills, and end up getting into severe problems. This article will clearly define to you what could actually happen when you don’t pay your credit bills. The initial process is not harsh as credit companies do give chances to their customers, but if things go over board, then you could be in serious trouble.

1). Mail Box

As soon as you miss out payments, you’ll find fresh notices waiting for you in the mail box. This is the first initial step that credit companies take to notify customers.

2). Phone Calls

When you miss out on payments, you start getting phone calls. Some warn customers gently, some get very harassing. For those who harass, you can complain against them. This is why most companies avoid harassing customers. The collectors may drive you crazy with their repeated calls and may threat you in many ways.

3). Credit Bureaus

When you consistently miss out payments and when calls and threats don’t work, you are immediately reported to the credit bureaus.

When this happens, the credit score shows up negative and this is a bad sign as people may consider you not very affective when it comes to money matters.

4). Interest Rates and Late Fees Accumulate

When payments are missed, interest rates and late fee accumulates together and in this way your payments may reach quite a height where it would become extremely difficult to make up with.

5). Legal Action

The final straw that credit companies draw is to take legal action against you. Legal here doesn’t mean that you will be jailed or fined. It’s just that your property could be taken away or wages could be taken to cover up the debts.

Late payments on credit bills could be a cause for high fever and a great source of depression for most people. Fortunately there are also ways out there to solve your credit problems. Try to catch it in the initial phase, do not let the credit reach to the limit where you are desperate. Get legal or professional help as soon as possible and work out a money management way so that you can get your life and your credit bills back on track.

It may not be the end of the world if you don’t pay credit bills, but it could be the beginning of a very stressful life for you. Research for ways to cover the bills. Reduce consumption, increase savings, take up jobs, consolidate debts if possible and try to opt for an economical lifestyle rather than a luxurious one. When in crisis, each penny matters.

Do not ever consider selling your home for paying your bills. It may seem like a quick relief but it could later turn out to be very troubling, when you cannot get a home of your own to live. The last resort is of bankruptcy, but go for that only when you have exhausted all other ways. Live effectively and control your finances. Do not let your finances control you.

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Rana Mansoor Akbar Khan

Rana Mansoor Akbar Khan

Financial Blogger. Tech Journalist. Freelance web developer.

1 Comment

  1. kishore Mirapuri
    March 1, 2011 at 6:32 am

    Dear Sir/Madham,
    I have to pay 4 credit cards bills around HK$650000,sinces five year I haveing been paying minium pay to banks, I have family to support, and not having any properity as I sold my properity for family helth promblem,
    AS my business is very bad, It is very difficult for me to pay minum pay also, is any way to come out from that,paying high interest.