"What happens if you do not pay credit card debt?" is a question that I am often asked as I do counseling for people looking for alternatives to handling their bills every month. The answer is important to understand because neglecting your payments can have massive ramifications on your financial status.

The first thing that happens if you do not pay credit card debt is that you'll be charged late fees. Late fees are not the end of the world, but they can add up quickly and you'll begin paying interest on the late charges too. The next thing that will take place is that your accounts' interest rates will probably go up to the maximum that the terms of your agreement will allow. In fact, because creditors often check the status of all of your accounts, going late on one account may be grounds for either lowering your credit limit or raising the interest rate on your other accounts as well.

One of the most difficult things that happens if you do not pay credit card debt is that your creditors will begin calling. These lenders have whole departments dedicated to getting a hold of you and collecting your delinquent balances - no matter what. I've heard stories of collectors making false threats, verbally abusing borrowers, calling relatives, and more in an attempt to get you to send them money. The good news is that these calls can be stopped, but if you don't handle collectors correctly they can be an awful headache to deal with on a daily basis.

The biggest thing that happens if you do not pay credit card debt is that your FICO score may be affected negatively. The severity of the change in your score depends on a few things including the amount of the non-payment, how late your account is, the number of accounts that aren't being paid toward, and the type of accounts. This lowering of your FICO score can cause you to be unable to qualify for future loans, mortgages, etc. or end up paying significantly higher interest rates on accounts that you are able to acquire.

The truth about what can happen is scary, and should be avoided if at all possible. All is not lost though because there are different kinds of programs that can help you with keeping your accounts current or getting them paid in full very rapidly. There are also professionals that can help with rebuilding your FICO score if it is damaged due to going late on your balances. Becoming educated about your options for relief, and getting help if your situation is getting beyond your control are two powerful steps for avoiding what happens if you do not pay for credit card debt and taking control of your financial future.