what happens when you stop paying your credit cards?

The only tip is to PAY your credit cards. If you stop paying then they will immediately start reporting you as "negative" and "failed to pay" on your credit report. Next you will begin incurring "fee's" for not paying and your interest rate will go up to about 30-40%. They will let you build up these fee's for a few months and add the amount to your balance. If you continue to not pay for more than 6 months your credit card company will "sell" your account to a collection agency. The collection agency will ad their own fee's and take your account balance which if it WAS at $7,000 is now about $12,000. The collection agency will call you and everyone you know relentlessly trying to get money from you or your friends or your family, to pay YOUR debt. If you still continue to not pay, they will take you to court and garnish your wages or assets----in other words they will take money out of your paycheck BEFORE you get your check, They will either repossess what you purchased with your credit card or take something of equal value (car) and then they will get a court order to take a certain percentage of the money you owe them DIRECTLY out of your bank account (yes it is legal for them to clean your bank account out) SO in other words just pay your credit cards then NEVER get a credit card again as most of them are going to charge you higher interest rates anyways, they are all rip offs man....

The first thing that will happen is that they will start charging you late fees and then about month 2, raise your interest rate to 29% (or thereabouts). At that point, they will be reporting you to the credit bureau, with increasingly poorer paying habits (i.e., first 30 days late; then 60 days late; and so on).

At some point, they will turn the debt over to a collection agency, who will harass you to no end (or until you formally tell them to stop contacting you). For $7,000, the agency may decide that the balance is high enough to file for a judgment (depends on agency policy).

Basically speaking, if the credit card company refuses to lower your interest rate (which if you have been paying I would expect them to, since 15% is about the current rate for accounts in good standing) your two options become pay the debt as you originally agreed or ruin your credit.

When you stop paying your credit cards you are making a huge mistake. You will be hit with a late charge and an increased APR of 30% or more. Your creditor is not going to lower your APR. They will raise your APR to the highest possible rate they can. You will then be wasting more money than you are now by having a revolving debt on your credit card. If you go more than 2 months without a payment they will start calling you. You will also be reported to the credit bureaus for non payment. Your creditor is not going to negotiate with you or lower your interest rate for anything.

Not paying on the debt would be the worst possible decision here. First of all, right now 15% APR is actually a very fair rate on cards. So I wouldn't complain all that much about that. If you stop paying on this debt a couple of things are going to happen. First, your credit is going to get dinged. That won't help you in the long run at all since that mark will stay on your credit for seven years and will make all interest rates higher for you during that period. Secondly, you will probably be sent to collections and eventually sued. For 7k they definitely will pursue legal action. You will wish you had just paid as agreed at that point.

Now as far as withholding money from them in general, it is not going to make them lower the rate. In fact it will make them raise it. Banks lower rates for people who a re good credit risks. You stop paying this and go into default, you are a bad credit risk. They will probably actually raise it to somewhere like 29%. Not a good plan at all.

They will not lower your APR.

Especially if you are carrying high balances.

Credit card settlement companies are basically scams.

And... you can't settle unless you are months and months behind (which devastates credit and you will be hit with late fees and higher interest rates).

15% is not that bad. (to most people this is pretty good)

Cut up your card so you can stop using it.

Make a plan to pay off that balance in 6 months or a year. You can do this !!!

you will possibly incur a great style of expenses. the enterprise will chase you for a on an identical time as and then it might get surpassed to a debt series enterprise. in case you nevertheless do no longer pay they are going to take you to court docket after which you will incur greater expenses for expenses. finally they are going to deliver the bailiffs around and take your stuff. you will locate it very confusing to get credit in destiny. You obvoiously could have sufficient funds to pay the £a hundred a month so which you will desire to save doing that. in case you hold up with payments finally your credit will develop and additionally you would be waiting to get yet another card and do a stability pass. you will desire to attempt ringing the enterprise to work out in case you are able to negotiate on a decrease pastime fee?