What Happens If I Default on My Credit Cards?


Credit cards are extremely convenient and can be a great money management tool, but unfortunately they can also allow consumers to get into huge amounts of debt very easily. Defaulting on credit cards is common, but it is definitely not without consequences. A credit card that is in default will be closed, and no further charges will be allowed on the account. However, interest and late fees may continue to accrue. The credit card company will contact you repeatedly seeking payment and will likely threaten to send the account to collections. Once the card goes to collections, interest and fees typically no longer accrue, but the collection agency will attempt to collect on the debt by any means possible.
1 Additional Answer
When you default on credit cards, it will be closed and no further charges will be allowed on the account, which will make it difficult for you to qualify for credit cards or other loans in the future. The collection agency or Credit Card Company may also sue you, and they can force you to pay court costs and have your wages garnished if they win.
Explore this Topic
In most instances, credit card firms or companies will be willing to offer some sort of repayment arrangement. One should write to them detailing the circumstances ...
If you demagnetize something you make it no longer magnetic. This happens a lot with credit cards that they get demagnetized phone being next to cell phones. ...
Sixty years ago, the first modern credit card was introduced and the first organ transplant was performed. The Korean War also began 60 years ago and in the same ...
About -  Privacy -  Careers -  Ask Blog -  Mobile -  Help -  Feedback  -  Sitemap  © 2014 Ask.com