No one ever recommends ignoring our credit card debts. Understandably, not paying your credit card debt can appear like a temporary way out, especially when the finances are tight. Perhaps you have lost your job, or you got into an accident and faced unexpected medical bills. Whatever the reason is, if you tend to fall behind on your credit card payments, then you might have to face serious consequences, which we are about to assess in some time.
Read on to learn more.
Missing Out on Credit Card Debt Payments – An Overview
If you miss out on one or two credit card payments, it can quickly turn into a serious financial problem, which will make it difficult for you to get out of and amend the situation. Credit card companies have important resources that enable them to collect the finances owed. With that said, if you miss out on your credit card debt payments, you might have to deal with high penalty rates, hefty fees, and uncomfortable calls.
The repercussions can even turn incredibly serious if enough time has passed and you haven’t paid back what you owe.
What Happens If You Miss Out On Your Credit Card Debt
Apart from the legal consequences of not paying off your credit card debt, here are some other penalties for not paying off your debt:
Experience Serious Credit Damage
Any late payments or late collections will remain on your credit score for at least seven years, which is why you must understand how to pay off credit card debt fast and start working on your credit score. This severe credit damage will cause your credit score to drop significantly, which can make it difficult to qualify for a new rental home, new credit, or even new jobs.
Never-Ending Debt Collection Attempts
Another potential penalty that you might face if you fail to pay off your credit card debt is that you might have to deal with endless collection attempts. With that said, you can expect never-ending calls, emails, letters, and even the fact that lenders might contact your relatives and neighbors in an attempt to reach you.
In other words, you might have to deal with consistent debt collectors, which can be a stressful experience.
An Increase in Debt Load
If you keep ignoring credit card debts, you can expect the debt load to increase to the point that the interest rates might exceed 30%. Besides, you will have to deal with adding up late fees, too. If left unpaid, the original balance will double and even triple later.
Tap Into Your Home Equity with AmeriSave to Pay Off Your Debt
You might want to leverage your home equity and get a home equity loan to pay off your debt. The professional team of AmeriSave can help you with the needful and access the much-needed finances to pay off your credit card debt, especially when you are dealing with high-interest credit card debt. You might want to think of the home equity loan in terms of a second mortgage and use the lump-sum amount to restore your credit score.
