What happens when you stop paying CCs

iVillage Member
Registered: 02-21-2006
What happens when you stop paying CCs
6
Wed, 12-17-2008 - 8:35pm

What happens when you stop paying the credit card?

iVillage Member
Registered: 10-25-2005
Wed, 12-17-2008 - 9:23pm
I am so sorry you are going through this! First, is there a reason you have to pay off the total amount at once? Second, you do not want to deal with the collection calls. Once it hits collections, that is actually a pretty big ding on the credit report. If you can do it, I would use the savings. I am guessing I missed a post about the payment jumping to $900 a month.
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iVillage Member
Registered: 03-25-2003
Wed, 12-17-2008 - 9:44pm

If you have the money to pay them - please, pay them. The LAST thing you want to deal with is collections calls. They are relentless, rude and overbearing. They will call every 30 mins ALL day long. You will seriously go insane. Waiting til March to pay them off is going to cause you to hit the dreaded 90 days deliquent mark which is when most companies write it off as "bad debt", but continue to try and collect on it.


If you have decent credit, don't ruin it with this one card. You never know when you might need a decent credit score for something.


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iVillage Member
Registered: 12-13-2007
Thu, 12-18-2008 - 1:00am

I know by not paying on a credit card, it will ding your credit score pretty bad. Is it possible to take *just enough* out of savings to make a large enough payment to get you back on track? I think not leaving yourself a cushion of your savings, is a really bad idea. Two of the tires on my SUV were getting pretty bald, but I wound up getting a razor blade in one of the decent tires. That was $600 I had to pull out of thin air.

I'm really in a pickle right now with Capital One - no fun!

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iVillage Member
Registered: 03-03-2004
Thu, 12-18-2008 - 8:12am

So to understand, they told you they are raising your rate, and you are not agreeing so you have to pay the full amount?

iVillage Member
Registered: 12-20-2005
Fri, 12-26-2008 - 6:28pm
I under stand your situation all too well. I'm in a similar situation. Recently, when I was talking with a rep from a CC, she suggested a "settlement" plan. Yes, it will be a negative hit on my credit report, but rather than having to pay the total amount (about $8000), I only have to pay the principal amount (about $3000) in regular set amounts, no interest, no late fees and no penalties. I never intended to get so far into debt or so far behind in payments, but it happened. This is a reasonable way out to me.
iVillage Member
Registered: 03-04-2007
Sat, 12-27-2008 - 2:12am
I would only add that they do have the option to actually sue you for the amount they claim is due if you just stop paying. And if you get sued and don't respond (typically within 20 days), you will be in default, which means that they automatically win. That's fairly extreme, but I've seen it happen to family that stopped paying their debts.

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Wife to Ron, Mommy to Will


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