Credit card debt can be very easy to get into, but it is a completely different story to get out of. It can be upsetting to watch your money get throw away each month when making payments on several different credit cards, especially if interest fees are high and canceling out your minimum monthly payments. Many get to the point where they would just like to give up and forget about their credit card debt, but unfortunately it won’t go away on its own. Avoiding your credit card debt is the worst thing one can possibly do, since there are many consequences that come along with outstanding debt.
When credit card payments are not made for an entire month, expect to get several phone calls from various creditors and credit card companies. The callers will most likely be demanding and not very sympathetic, and will be more interested in taking an immediate payment than hearing an excuse for why you cannot afford it. Even if you tell them you won’t be able to make a payment right away, expect to hear back at least once a week until you are caught up on all of your bills.
Even though creditors can be pretty annoying, they aren’t the worst of your problems. Most credit cards charge outrageous fees for late payments, even if they are made only a day after they were due. Even more fees will be charged for going an entire month without making the minimum monthly payment, meaning your debt will only increase if you decide not to pay it. These fees can send your credit balance over the limit if your card is already maxed out, meaning only additional fees for going over the limit will be charged to your account.
Many credit cards start off with a pretty decent interest rate, usually between 5 and 25 percent. This interest rate is pretty much guaranteed as long as you are a cardholder, unless of course you decide to default on the payment agreement you signed when you applied for the card. Most credit card companies are able to raise your interest rate if you fall even one month behind on your monthly payments, meaning that even more fees will be added to your already high credit card debt. The interest rate can even turn into a variable rate, meaning it can increase every month that you decide to avoid your payment obligations.
Avoiding your credit card debt can have a huge impact on your credit score, especially if your credit card company reports to the major bureaus on a monthly basis. Although a decreased credit score may not cause any problems right away, it can make it harder to finance a big ticket item such as a car or home in the future.
If the debt is considered delinquent for a long period of time, credit card companies can start to take legal action against you. Not only can they take you to court to sue you for everything you owe them, but they even have the authority to have your wages garnished to ensure they get back every cent they are owed. Although it is a very long process and most credit card companies will not go to this extreme, it is possible and can cost you thousands in the long run.
If you don’t want to pay off your credit card bills, think again! Since excessive credit card debt can be frustrating, get it paid off as soon as possible. Avoiding it and not making the minimum monthly payments will only make the situation worse, and can actually double the amount you owe because of late fees and other charges issued by the company. By paying as much off as possible each month, you can get your debt managed and have it paid off in no time.
