Since credit cards do not require collateral to receive a line of credit, it may seem reasonable that you can simply stop paying the debt if it gets unmanageable. Unfortunately, credit card companies will not let the issue go.

Identification

The end result of simply stopping payment on a credit card is the credit card company hands the issue to a debt collection agency or attorney and starts the process of taking wages out of your weekly paycheck and seizure of your property, reports CreditCards.com.

Features

The consequences of not paying off credit card debt start as soon as 30 days after missing a payment, reports Loan.com. After 30 days, the late payment appears on your credit report and lowers your score.

Effects

The effects of defaulting on a credit card are about as bad as it gets in finances, reports Bills.com. Your credit gets destroyed, creditors will constantly harass you and you may have to declare bankruptcy multiple times.

Important Fact

Generally, the credit card company considers your account in default after missing payments for 180 days, reports CreditCards.

Tips

Not paying credit card debt is never an acceptable solution, according to Loan.com. Credit card companies are usually willing to work with you on a debt repayment schedule you can afford. A credit counseling agency can also help mediate the conflict between you and the creditor.

Source:

CreditCards.com: Bad credit 101: What happens to delinquent credit card accounts?

Loan.com: What Happens When You Miss Multiple Credit Card Payments?

Bills.com: Advice on Consequences of Credit Card Default