When you stop paying your credit cards, the consequences can escalate over time and affect your credit score, finances, and even legal standing. Here’s a breakdown of what can happen:

1. Late Fees and Increased Interest Rates (1–30 days late)

• Late Fees: Most credit card companies will charge you a late fee for missing a payment. This can range from $25 to $40.
• Interest Rate Increase: Your interest rate may increase (sometimes to the penalty APR), which is usually higher than the regular rate.
• Credit Score Impact: One missed payment won’t immediately tank your credit score, but it can start to hurt.

2. Credit Score Damage (30–60 days late)

• After 30 days, the credit card company typically reports your missed payment to credit bureaus (Equifax, Experian, TransUnion). This will negatively impact your credit score, making it harder to get loans, credit, or favorable interest rates in the future.
• Additional Late Fees: You’ll continue accruing late fees each month you miss payments.

3. Debt Collection (60–120 days late)

• At around 60 days, you might start getting frequent calls, emails, and letters from your credit card issuer.
• Further Credit Score Impact: Your credit score will take further hits as the delinquency period lengthens.
• Credit Limit Suspension: Your credit card issuer may suspend or lower your credit limit.

4. Account Charge-Off (120–180 days late)

• If you continue to miss payments, typically after 180 days (6 months), your account may be “charged off.” This means the credit card company writes it off as a loss and closes your account.
• Debt Sent to Collections: Your debt will likely be sold to a collections agency, and you’ll start getting contacted by third-party collectors.
• Credit Report Damage: A charge-off or collection account will stay on your credit report for up to seven years, severely affecting your creditworthiness.

5. Legal Action (6+ months late)

• Lawsuit: Some creditors or collection agencies may sue you to recover the unpaid balance. If they win, they can garnish your wages or place a lien on your assets, depending on your local laws.
• Wage Garnishment: If a lawsuit leads to a judgment in the creditor’s favor, your wages or bank accounts could be garnished.

6. Bankruptcy (if debt is unmanageable)

• If your debt becomes overwhelming, you might consider bankruptcy as a last resort. While it can help discharge your debt, it has long-lasting effects on your credit report and financial health.

Long-Term Consequences

• Difficulty Borrowing: Future lenders may be hesitant to approve loans or credit for you, or you might be offered higher interest rates.
• Difficulty Renting or Getting a Job: Some landlords and employers check credit reports during application processes, so a poor credit history may affect housing or employment prospects.

It’s important to reach out to your credit card issuer if you’re struggling to make payments. They may offer hardship programs, payment plans, or other options to help you avoid some of the harsher consequences.