Question

What will happen if I refuse to pay my credit card?

They have upped my finance charges to where I can never pay it off anyway. My minimum payment (which I now cannot afford) would only serve to pay for now huge finance charges every month. What is going to happen if I don't pay it off. I'm a college student and I own nada. I called and they won't lower it. I can't afford it and have no incentive to even attempt to pay it off since it will never end since they've increased everything. So if I just stop paying it, what can they do?

Obviously, I know I can't use the card anymore, but what else can they do?
I know jail isn't an option for them because there is no debtor's prison in America.
I understand that unless you have a job, debt consolidation isn't an option. I'm a full-time student and I am not dropping out of school or taking a job and trying to keep my grades up just to pay off this credit card.

7 years ago - 21 answers

Best Answer

Chosen by Asker

Don't be a deadbeat---you got the card, YOU charged the goods, YOU PAY FOR THEM... why the HECK should the rest of the bill paying taxpayers suck up YOUR DEBT... and here I thought college students were supposed to be SMART!!!! Part of what is wrong with this country is the fact that the current YOUNG GENERATION refuses to take RESPONSIBILITY FOR THEIR ACTIONS....... they drink, they drive, they KILL, they get credit anytime the WANT and then destroy it by not paying for the items they charge... WHICH leaves the rest of us to PAY out of OUR POCKETS for YOUR MISTAKES.... I think the credit system in this country STINKS.... it is handed to kids like CANDY because the credit companies EXPECT them to default which eventually makes the credit card companies richer and richer with their higher finance charges.... KIDS should NEVER be given credit cards.... heck most ADULTS should not be given credit cards... case in point.... If you purchase an item on a credit card for say $100 and DO NOT MAKE ANY PAYMENTS---lets say on a CAPITAL ONE CARD..... you are charged $39 PER MONTH for the late payment charge PLUS finance charges of 18% on the unpaid balance---so at the end of a YEAR of non-payment, you will owe over $600 for that $100 purchase... and they WILL go after you... and also, if you ever get to see your credit report, the NON-payments or late payments are ALL listed INDIVIDUALLY on the report and can sit there for over 7 YEARS.... making it totally impossible for you to get credit again until it is PAID and off your report... PLUS, get out of college, get a job, find a house... OOPS,, can't buy the house---your credit SUCKS... no one will give you a loan---Oh well explain THAT to your wife and kids...!!!!!

7 years ago

Other Answers

The amount you owe will keep compounding until it's outrageously high.

If you can pay it, I recommend pulling together all your funds and doing it.

If you can't, I recommend hiding your money, and filing for bankruptcy. It will hurt your credit, but it will save you a lot of money right now.

by AllahFeatTheMasters - 7 years ago

well it can hurt your credit and they could possibly take you to court

by imaginethat265 - 7 years ago

Sue you. Offer a payment plan. Ruin your credit. The bill will just keep adding up either way. It's not something that's going to go away just because you won't pay.

by Sand Flea - 7 years ago

Jail. Horrible credit, everything you do will end up costing more, insurence ect.

by ««{¿Âúzï Ë!¡!™?}»» - 7 years ago

If you refuse to pay:

First, it ruins your credit rating. Second, they sue you. Third, when you graduate and get a job, they garnish your wages. It does not matter that you own nothing now; you will own something eventually, and they can take it then.

Your best option is to transfer the balance to a lower rate card that you can afford to pay. Continue to make the payments on the existing card until the transfer is complete. If you stop paying the existing card, then you will not be approved for the new card.

by StephenWeinstein - 7 years ago

The best thing to do is get involved with a debt consolidating agency. They can help reduce your payments - you can't use the card now anyway - and stop the collection calls.

If you don't pay, they will ruin your credit and harass you for about a year - then they will probably forget about you, but your credit will be ruined until you fix it. If you don't want to get involved with a debt consolidator, call your credit card company and tell them that you think you will have to because you don't see any other options. They will likely give you a settlement amount and work with you.

Remember though, that once you go into collections, very often the credit card company will recoup some of their loss through their own insurance protection. The settlement they offer will mostly likely be what didn't get covered or an attempt to make some additional money off of you.

Peace!

by carole - 7 years ago

Kevin, call a financial service accredited by the State or government, like By Design financial services.

This is very important, because what they do, is arrange a program so that you pay it off every month without high finance charges.

It is an automatic payment plan with low interest and of course the promise of not using any credit cards.

That way, you can focus on your prosperity, because ruining your credit at this point.... Is really not a such a good idea when you need a car loan. Its really embarrassing to be refused a loan because your FICO score is bad.

Another option is to claim bankruptcy. The catch is that you cannot make more than a specified amount of money for 6 months and or cannot use a credit card for up to 18 months.

Its different in every state or country.

Just don't not pay it. Pay the minimum until you get either option completed. It will help you to become very responsible with money and not feel in debt, weak, and poverty conscious.

You want to become financially healthy, and feel good energy in your life. Just be responsible and do the right thing.

by Laura J - 7 years ago

Well first you will get these reminders of past due amount. You will continue to be charged the finance charges. And the phone calls will begin. As early as 8am and as late as 9pm every hour. Then collection notices will show up. If you continue to ignore all this. Then they will eventually send it to a collection agency. Which will use scare tactics to try and make you pay. Finally a lawyer will get it and try to collect on it. And if that fails they will send you a letter from your local district court. Suing you for what is owed. Your best bet is work a deal with credit card company or collection agency if it has gotten that far. I pay 100.00 a month on no intrest charged debt.

by Rob C - 7 years ago

They'll turn it over to a collection agency and can file legal action against you in the form of a judgement that you would have to pay by court order. It would also cause your credit to be such that you won't be able to buy anything or get any good interest rates which will keep you in debt.

by Jeff - 7 years ago

Your credit will be ruined and any future wages will be garnished. You need to get a payment plan worked out.. a mistake here will follow you the rest of your life.

by shiloh - 7 years ago

They can call in a collection agency to hound you for the rest of your days.

They can sue you.

It will ruin your credit.

When you got the credit card you agreed to pay your charges on it, so technically by not paying you are guilty of a crime.

Ordinarily if they increase your finance charge, it is for new charges only. Your existing balance should still be at the old rate. If you can no longer make payments, you might consider calling them and telling them that. You might get them to waive the finance charges in exchange for regular minimum payments. They would rather get some money than no money.

There are also consumer credit organizations that you can go through that can help arrange payments with companies that your budget can afford.

As a last resort, you could declare bankruptcy, but then your credit is shot for about 10 years until it clears from your record.

by Joe B. - 7 years ago

They can send you to collections and eventually they can sue you. Plus, not paying will send your credit into the lowest, possible score. Low credit scores mean you won't be able to apply for any other credit cards, any car loans, a house, any sort of financing for anything - furniture, any rented apartment, department store credit cards, anything with financing. I really urge you not to go down this road.

If possible, you need to get a job or get someone in your family to help you pay your minimum payment ON TIME for a year. After a year, then I bet the credit card company will lower your interest amount so you have a better chance of paying it off.

Unfortunately, credit card debt is an awful black hole. You need to pay your way out. All the credit card company will want to protect your credit and get them to work with you is to pay at least the minimum payment on time all the time.

I hope you realize how important this is. Credit card companies report your payment habits to the credit reporting agencies. ALL financial institutions look at this information before they give you any money.

My best advise is to cut up the credit card, stop using it, start paying that minimum on-time no matter what.

Source(s)

by Aslade Averyn - 7 years ago

They can get a judgement against you for the amount, then garnish your wages to collect what you owe once you finish school and get a job, or seize your assets once you have some. Or if you are working now, they can garnish those wages.

It will also show on your credit, so you'll have a hard time getting another credit card, a car loan, a mortgage, or any other type of loan.

by Judy - 7 years ago

If you are not going to continue using the card close it. This way you can make payment arrangements with the company to pay it off. If you keep the card open, and you don't pay it it will just keep assessing fees until they can't charge you anymore, and then it goes to collections and is on your credit report until you pay it off.

by vegas_vixen24 - 7 years ago

it goes to their internal collection dept
then they sell it to a collections agency
if no avail, then summons (lawsuit)
you still acrue interest
you pay for their legal cost

by hi91977 - 7 years ago

Don't pay it until you get a job. When you get a job call them back the work out a payment plan. It will stay on you credit report for ever. It could be years before you began to pay it off. You will pay much more than you owe that way. By all means pay it. Credit is very important. Everybody looks at it. You want to stay at or above 700

by SandraD - 7 years ago

Kevin, the other answers have told you what will happen. But there is surely something you can do to help get it clear. Cut the spending, use the money saved to pay off the card. No matter how little, every cent extra you can pay off is nibbling away at the problem, and you can do it.

Part-time job at weekends, pet walking, babysitting, whatever can bring in a few bucks, just do it and pay all (or nearly all) off the debt. Find ways to economise - friends round to your place to listen to CDs or watch TV or have a music playing session together, instead of out in the pub for a few beers .... walk instead of bus or taxi .... bring girlfriend to museum or art gallery instead of more expensive date, or organise a picnic ... if she is aware of your problem, then she will be happy to help you fix it by going free places - dates costing bucks could be an occasional treat instead of the norm.

Check out Oprah's Debt Diet
www2.oprah.com/money/debtdiet/steps...
and also www.cccsedu.org/
members.aol.com/SBakerMan2/1income.... - scroll down the page to the section The Secret. Many of the paragraphs are relevant.
members.aol.com/dsimple/conquerdebt...
www.stretcher.com/menu/topic.htm
www.savingadvice.com/ here is info about college scholarship, too

and look for The Complete Tightwad Gazette by Amy Dacyczyn at your local library

Source(s)

by bluebell - 7 years ago

They will sell it to a collection agency for pennies on the dollar. You will be able to settle with the collection agency for 50 or 60 cents on the dollar. Time. thats what it takes. The longer it has been since you have made a payment the more they are willing to go ahead and settle.
It was about 10 months for us. We owed $16,000.00 and was offered a settlement for
$8,000.00.
That is what these so called debt settlement companies do but for a fee that you could use to put on the debt. Stay away from them. YOU, and you alone are responsible for the debt. Not the debt settlement company.

by heybulldog - 7 years ago

Well what will happen is that in about 5 or 6 years, you'll want to buy a car or a house and won't be able to because your credit score is in the low 500. You will whine and cry and complain that no one will give you a loan even tho you make really good money.

And those of us who pay out debts, will shake our heads and say "there's another one".

The judgment they are going to get when they take you to court is good for 10 years and can be renewed. That's another ding on top of the default.

Your car insurance will cost more -- they use your credit score to calculate risk. You won't be considered for some jobs -- employers review credit reports as an indicator of your responsibility.

by bdancer222 - 7 years ago

Let me guess the rates went up after you where late with a payment, or overlimit. Pay on time for 6 months and they will go back down.. What can they do? Ruin your credit for at least 7 years GO to court and have a judgment filed against you, and yes employers do check your credit rating as part of the hiring system. Its not what you have now, it is what you want in the future that is affected

by Pengy - 7 years ago