Those who do not pay their credit card debt often have one question in mind—“Will they go to jail for unpaid credit cards?” Depending on the amount you owe, your credit company may choose to file a lawsuit against you. They have the legal right to take the funds that you owe them one way or another. When you apply for the credit card and you sign the agreement, you confirm that you will be responsible in paying the credit card bills. If you stop paying, you can bet that the credit card company will come after you.
What a Creditor Does when a Borrower is in Debt
Typically, the credit card company will wait 30 days before contacting you. You will be informed first about your debt through phone calls or a letter. You should contact them and make sure you pay for the money you owe. If you choose not to communicate with them, they will use more aggressive steps. They will phone you several hours a day, not only in your home but also in your workplace.
If you still do not respond after 180 days, the company may do one of two things. The first is to sue you so that they can collect the money you owe. The other is to sell your account to a collection agency. The collection agency will do everything to collect the money. Some collection agencies may sue you as well.
Why You Should Pay Your Credit Card Bills
There are a great number of consequences if you leave your credit cards unpaid. Credit card companies often put more interest charges, penalty fees, and late fees to your account. If you choose to pay for it in the end, expect that the amount is bigger than the original amount.
If you choose not to pay, you will be summoned to court. This means that there will be legal fees. If the court finds you guilty, the credit card company will have the power to collect the funds you owe from your wages. They can have legal access to your bank account where they can directly take the money. They can also get the funds from your paycheck.
If you do not pay your credit card bills, this will certainly hurt your credit score. As you know, your credit history is quite important. If you have a low score, you cannot take advantage of excellent insurance rates, lower interest fees, home or auto loan approval, and even apartment rental. Needless to say, you should pay your credit card bills monthly. Your credit score will continue to decrease as long as you carry a balance in your card. Apart from that, you will be given more fees to pay to diminish the credit-debt ratio. This lowers your credit score much further.
There are many reasons why people do not pay their monthly credit card bills. Although you may not go to jail, there are several life-changing consequences if you won’t settle your accounts. If you think you will go into debt, analyze your budget. Make sure that you allocate funds for your necessities and your credit card bills as well.