What will happen if you just stop paying credit cards?

Question

One of them jacked my interest rate up from 13.99% fixed rate to 29.99% variable without my knowledge and from what I'm reading Providian/WAMU is doing this to all of their customers even though they pay their bills on time and never go over the limit. Why should they get away with raping people like this? At 30% interest I'll never get them paid off so what will they do if people just stop paying?

Answer 1

You can't just stop paying them. You have an obligation to pay your debts. However, what you can do is call the card company and query them as to why you're interest rate was increased.

If you've been a model client with them but not so wonderful with your other accounts, they can use that to justify the increase.

If you take the decision not to pay, you'll steadily accrue interest on your existing balance, it will go into collections, kill your credit score and ultimately get sued. They'll get a judgement against you to garnish your wages. You'll be broke with bad credit.

Answer 2

Get a different card with a lower rate and transfer your entire balance to the new card.  That way you can pay it off.  Or better yet, get a personal loan and pay them off and CLOSE THEM.

If you just stop paying you will start with harrassing calls demanding payment.  They will report your non-payment to credit bureaus, damaging your credit rating.  From there, the will either sell it ot a collectoin agency, or they can try to take you to court to get you to pay.

Yes, it sucks and you need to find a way to not pay that much interest.   Try calling them and negotiating.  If they won't budge, pay it off any way you can.  Either by transferring to another card, or getting a personal loan from your bank.

Answer 3

They get away with raping people because people let them.

The wife did. 6months later it went to collections. 6 months after that she settled for 70% of what she owed.

My advice if you can't pay them is to pile cash in the bank and settle with them a yr from now. It will be at least  a yr before they sue.

Don't play the credit card game.  If you play with snakes you will get bit!!

Credit cards are the financial worlds cigarette.

"building Credit" is the biggest joke of the 21st century.

If you play the credit card game. You either pay interest and fees or you ride on the backs of people that get caught up in the whole credit worship scheme or the single mom that's just trying to make it and ends up with lots of debt and interest.

If you pay as you go. If you live on less than you make. You will not have any payments. You'll have money and not have to worship at the alter of the almighty fico score.

Answer 4

Your credit will be ruined, and you'll never get a loan again.  Sounds as though you need to learn to live within your income, not go charging amounts you can't afford to pay off monthly.

Answer 5

If you just stop paying your credit cards your credit will plummet, and you won't be approved for any kind of loan, other credit card, or even be able to rent an apartment. Companies check your credit to see if you're trustworthy, if you're going to pay THEM. Call your credit card company and demand to know why your interest rate was changed. If you're been paying on time, they will usually work with you to get you a lower rate. They will try to raise it, because that's how they make their money, but if you call them on it, you can usually get a better rate.

Answer 6

Pay the bill, clear it off and then stop spending anything more on that card. That should teach them a lesson.

If you have been paying up on time then your credit score should be good and you can get a decent credit union card.  

Answer 7

cancel that card and get another card with a lower interest rate that you can transfer that balance over to....

in the meantime wanna get nakid and play in the hot tub?....

Answer 8

If you stop paying the card you will start receiving many phone calls from very nice people who will respectfully inquire as to when you intend to make a payment. Get real and come up with a better plan.  

Answer 9

Yep, that is specifically why I no longer carry any credit cards in my wallet. Because they can, and will, send your interest rate into the strosphere for doing nothing more being their customer.  It's immoral, it's obscene, and it's greedy.  30% is usury and they know it. But legally they can charge it.  My first piece of advice is transfer the balance to a better card/company (even though on many levels they are all they same) and pay off the balance as quickly as possible.  My second bit of advice is get rid of the credit cards. The industry is out of control and until the government steps in and says enough they will continue to s***w and pillage the American consumer.  

EDIT- I totally forgot to answer your question.  If you stop paying they will intiate collection proceedings. They may do it themselves or get a collection agency after you. If you still do not pay they will "charge off" the account as a bad debt and then it's likely you can be sued.  But that depends on the size of the balance.  Once they get a judgement against you they can then seize your assests and garnish your wages. Not to mention your credit will be shot to h**l for years.  Best that you pay it but do try to transfer the balance.

Answer 10

If you stop paying the credit card company will report you and your credit will be shot.  Yes a jump like that is ridiculous and you need to dump that as fast as you can.  My suggestion is to try to find a company that will let you shift the balance to them (If theirs is less than 10 that would be ideal.) Lock the credit card up and pay it off.  If you keep the 30% card, like you said you will never pay it off.

Answer 11

they bend you over and don't use lube

Answer 12

They should have sent you a notice that if you didn't agree with the new terms and interest rate you could close the account and not be subject to the new rate. You might still qualify if the due date by which you could decline the new rate hasn't passed yet. Otherwise, if you can, open an account somewhere else with a better rate and transfer the balance.

Answer 13

If you stop, sure you might feel like your are "sticking it to them".  But, if you ever have to apply for a loan in the future.  Like for a house,... they will see it on your credit that you have not been paying your other bills and deny you the loan.  You will mess up your financial future.

Answer 14

Usually you can opt out of changes to your account, but the window of opportunity may be over.  You can't stop paying or they'll charge you more and they'll take legal action against you and it will ruin your credit.  Stop using the cards and just start paying down your balance.  Also, see if you still have time to opt out of the increase in interest.