Everyone knows that being in debt can be very troublesome and just about every American in today’s society has been in some sort of debt.  Whether it was in college or it’s in your adulthood, it can be very frustrating when you receive bills in the mail and you’re not able to pay them off.

The question a lot of people wonder is “What happens if I don’t pay my credit card bill?”  The first thing you should truly consider before you just stop trying is to try and pay off the minimum.  The minimum depending on your balance is generally very low and any type of job should be able to pay it off.  By doing so, you’re going to save your credit and your financial future for the next few years.

If by chance the above scenario can’t work out for you, it’s important that you contact your credit card company before you stop paying your bill.  If you know you’re going to be laid off or you just know you’re going to be in a financial bind, the credit card companies will always try to work something out for you before they start harassing you.
Remember that you’re only going to be in the hole for as long as you want to be.  The only way you can get out of the hole is with dedication and motivation.  Without this, you won’t be able to survive in the financial world.

Now, let’s get on with what would happen if you don’t pay off your credit card bills –
First off, the credit card companies are usually only losing a little bit of money when you don’t pay off your credit card bills.  Credit card companies generally have insurance companies that insure them up to about seventy percent of their lost debts.  This leaves them with thirty percent.  A majority of the leftover percentages can be written off as a tax loss.

When the credit card companies finally give up on you, they generally sell off your debt to a collection agency for pennies on the dollars.  This way, the credit card company just gets rid of you 100% and let’s someone else try to get the money of your pockets.  Collection companies will generally try hard to get at your money.

Some of the things that may happen to you when you don’t pay off your credit card bill are as follows –

Your credit score will go down

Your credit score is the most important part to your financial body.  Whether you’re trying to apply for a car loan or a home mortgage, it’s important that you keep this score up.  The worst thing you can do is not pay your bills.  This will drop your score by a lot every month you don’t pay.

Lawsuits may occur

You’ve probably heard of this before.  Depending how bad your debt is and how much you cooperate with the companies, you may find that some credit card companies may come after you via the court system.  If this is the case, you’re in a world of hurt.  You just have to sit back and realize how much money the credit card companies have to work with.  When you don’t have any money, it makes it worse.  The worst case scenario in this one is that you’ll declare bankruptcy.

Garnish of wages

This one is probably very rare when it comes down to not paying your credit card bills.  If you’re not familiar with this, a credit card company will legally be able to take wages from your paycheck if you’re working.  Remember, if you’re working, you should be able to pay off that minimum, there’s no reason to give up!

These three things are just a few of the main ways credit card companies will come after you if you don’t pay your bill.  It’s important that you pay off just the minimum, it can’t be stressed enough.