What should I do if I can’t pay my credit card bills? | Consumer Financial Protection Bureau (2024)

FAQs

What should I do if I can’t pay my credit card bills? | Consumer Financial Protection Bureau? ›

Your lender will contact you to demand the missing payments are made. Then if you don't make the payments they ask for, the account will default. And if you still don't pay, further action may be taken, such as employing debt collection agents to recover the money you owe them.

Your lender will contact you to demand the missing payments are made. Then if you don't make the payments they ask for, the account will default. And if you still don't pay, further action may be taken, such as employing debt collection agents to recover the money you owe them.

Contact your credit card company as soon as possible to discuss your situation. You may be able to negotiate getting a grace period, waiving late fees, creating a payment plan, or lowering interest rates.

If you default on your credit card debt and are unable or unwilling to work out an arrangement with your credit card company, you risk being on the receiving end of a debt collection lawsuit. Getting sued by a creditor or collection agency can be an unsettling experience, especially if you don't know what to expect.

NO. You cannot go to jail simply for failing to pay your credit card debt. It is also illegal for creditors or debt collectors to threaten you with arrest or any kind of criminal penalty to try to get you to pay.

But generally, if you don't pay your credit card bill, you can expect that your credit scores will suffer, you'll incur charges such as late fees and a higher penalty interest rate, and your account may be closed. And the longer it takes for you to pay that bill, the worse the effects may be.

If you get a summons notifying you that a debt collector is suing you, don't ignore it. If you do, the collector may be able to get a default judgment against you (that is, the court enters judgment in the collector's favor because you didn't respond to defend yourself) and garnish your wages and bank account.

Does the government help with credit card debt? ›

Unfortunately, there is no such thing as a government-sponsored program for credit card debt relief.

If you want to know how to stop paying credit cards legally, that could be tackled with debt settlement programs or filing for bankruptcy. Some of these options can help you get much-needed temporary financial relief. Still, there are drawbacks to consider, including the risk of being sued or selling assets.

Outside of bankruptcy or debt settlement, there are really no other ways to completely wipe away credit card debt without paying. Making minimum payments and slowly chipping away at the balance is the norm for most people in debt, and that may be the best option in many situations.

Penalties for missing a payment include negative marks on your credit history, late fees, the loss of promotional interest rates or rewards and increased interest rates. Even a recently missed payment on credit card debt can result in a call from a collections agency.

Most consumers have about a 14.5% chance of being sued by a credit card company, as detail in a report by the Consumer Financial Protection Bureau.

For example, federal law won't allow a bank to offset your deposit account to pay off your consumer credit card account.

Does credit card debt go away after 7 years? Most negative items on your credit report, including unpaid debts, charge-offs, or late payments, will fall off your credit report seven years after the date of the first missed payment. However, it's important to remember that you'll still owe the creditor.

Credit card companies rarely forgive your entire debt. But you might be able to settle the debt for less and get a portion forgiven. Most credit card companies won't provide forgiveness for all of your credit card debt. But they will occasionally accept a smaller amount to settle the balance due and forgive the rest.

Summary: On average, credit card companies sue for non-payment in 1 out of 7 cases, or about 14.5% of the time. If you're being sued for credit card debt, use SoloSuit to respond and win in court. Your credit card company will try to reach you if you fall behind with your payments.