Today, everyone is under the stress of economy recession. Individual's need can not come to an end. Every one wants to fulfill his all desires with all available resources. Credit Cards also provide you some extra money for your needs. Initially it looks good and attractive, but later on it makes you under so much burden.
After a certain time when you are not able to pay credit cards bills. Then a very scary type of question arises "What will happen now?" or "Can it put me in the jail?" Here are some contingencies that what happen if you do not pay your bills.
Bad Credit Rating
The nonpayment definitely lowers your credit score. On failure of bill payments, the concerned credit card company will certainly go to the Central Credit Bureaus for their claim. A Bad Credit Score is not good thing for you. This bad credit will certainly affect your future rating. If anytime in future you have to apply for some job or any kind of loan like for your house, education, auto or any type of insurance. Then this Credit history will make huge problems for your approval.
A huge harassment is possible when on non-payment of credit card bills, A recovery team from credit card company visits your place. Their calls and visits are very hard things to tackle. They use many psychological ways to get your accounts information. Do not get yourself fried by them. You have your basic rights, so do not worry and seek the police's help.
Higher Interest Cost
The non-payment also led you towards high interest cost. After your first absence from payment, your interest rate will increase by the "Default Rate" Plus the charge or penalties for late bill submission. This ever increase your financial burden. By closing your account, you can avoid that increase of interest rate.
When your credit card becomes delinquent, the Credit Card companies can take some legal course of actions against you. Although companies usually avoid to go in courts due to tiring long process. But they have their right. When the Court gives the decision against you, then bank is ordered to freeze your accounts. But you still have some ways of helping through different agents and middle-men.