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What Happens If You Do Not Pay Your Credit Card Debt ?

One of the most common types of debt for people to find themselves in is due to credit cards. These days they are so easy to obtain and come with very high spending limits so it is easy to spend without thinking about it. You will also find that these companies are quite flexible and you only have to meet a minimum repayment each month. However the interest rate of these can be incredibly high so it is easy for the debts to spiral out of control without even realising. If you do have credit cards debts then it is important that you tackle these straight away and do not pretend that they do not exist.

Missing repayments
If you are aware in advance that you may not be able to afford the minimum repayment on your credit card then it is a good idea to contact them and let them know. In some cases they may be able to freeze any interest if you are having genuine financial difficulties. They may also be able to help you and offer lower repayments.

Beware the interest
Although credit card companies only ask for a minimum repayment each month this is not necessarily a good thing. Only paying a small amount each month may mean that you can manage the repayments but they will also be adding interest each month. You may find that you get to a point where your minimum repayment and the interest will almost cancel each other out. If this happens then you will never make any progress paying off your card but it will instead steadily increase.

What if you cannot pay ?
In some cases you may find that once all of your bills and outgoings have been paid that you are not left with enough to even make the minimum repayment. If this happens then you may be tempted to completely ignore your debt and walk away from it. Unfortunately, although it is an unsecure debt, your creditor can still find ways to make you pay and you may find yourself threatened with other action.

If you cannot pay then you should contact the creditor, explain your situation and see if you can come to an informal agreement regarding payment. Should you find that you really are struggling then it would be a good idea to contact a professional organization for help and advice on how best to tackle the problem. There are a number of debt management strategies available and you may find that one of these can help you regain control over your finances.