Financial Advice Blog

You really didn’t mean to. It may take several months to realize that you’re in big trouble and there doesn’t seem to be a way out. Be honest. If you’re like most people, the thought of just not paying your bill has crossed your mind. Before you stop thinking about this, take a minute and see what happens if you do not pay your credit card bill and a better way to manage this debt.

If you don’t pay your credit card bill, you’re in trouble with creditors calling and legal actions taken against you. You don’t want creditors calling you at home and work. Even if they follow all the legal guidelines, you may feel like they are harassing you. Next, you will be reported to the credit bureaus and negative marks will be made against your credit. Not really good, believe me. In the final step, your creditors will fill a legal action against you such as putting liens against you. It’s a big job but they’ll do it.

A better option would be to consider credit counseling or debt consolidation? There are many reputable counseling agencies that are there to help you choose the best solution for your credit card debt. The first step is to calculate exaclty your financial situation. To get the debt paid off, you’ll make a small, realistic budget.

They might also suggest credit card debt consolidation. The agency takes your outstanding debts from your credit cards and either getting you a lower interest rate loan or a new credit card account with a 0% balance transfer fee and lower interest rates. They transfer to a brand new account, close your other credit card accounts and then you only have one smaller payment to make.

If your credit cards are loaded, the counselor will probably suggest you a debt settlement. Again, your counselor will do this for you. They negotiate with the credit card issuers and settle your accounts for a much lower amount. You can try to do this on your own, but you will have more luck if you use a professional to negotiate for you.

It is advisable that you don’t consider don’t paying your credit card bill as an option for debt relief. I can’t lie to you, the process is not a party but it’s better than having a bad credit rating or filling a bankruptcy.

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