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You are here: Home / banking practices / What to Expect in the First Six Months of Not Paying Your Credit Card

What to Expect in the First Six Months of Not Paying Your Credit Card

September 7, 2021 by Michael Bovee 1 Comment

This post is part of the Debt Bytes “Charge Off” series and discusses what happens in “pre Charge Off” – when you’re not paying your credit card, and (s) are late between one and 180 days. Credit card debts that go unpaid follow a relatively predictable pattern.

When first missing a payment, the phone rings… a lot.  After 30 days late, your account is reported to credit reporting agencies (CRA’s) as such.

What happens if your credit card goes unpaid for six months?

Next, the phone rings… a lot.

The pattern of the phone calls when you are 30, 60, 90, 120 days late will often include offers of lower payment arrangements and hardship repayment plans. Your credit report will continue to receive unsightly blemishes in 30 day intervals.

As you get closer 180 days of not paying your credit card, some of the debt collection calls will take on a new tone. If you have not already thrown your phone out, changed your number, or continue to answer in your best disguised voice informing the caller that “um… that person does not live here”, you may get offers to settle the debt for less than what you owe.

At 180 days of delinquency (sometimes 210), something strange happens. Suddenly the background melody you became so accustomed to while watching television, or spending time with family, suddenly ceases. No more getting up to check the caller ID to see if you want to answer. No more checking messages for 10 minutes listening to “this call is for ____”, quickly followed by your pressing a button so you can hear “message deleted”.

When you realize that the incessant phone calls have ceased seemingly overnight, you may even be compelled to dance a jig while singing “ding-dong, the witch is dead, the witch is dead” like scare crow traipsing down the yellow brick road in the Wizard of Oz.

Not so fast….

Your Debt has Just Been Charged  Off and is in Limbo

The quiet is what happens while your creditor figures out which part of the collection pipe line they are dropping your account into.

Within a matter of days, or weeks, the monkey reappears and plants itself firmly on your back. He announces his presence daily, starting at 8 am and continuing through 9 pm.

Your unpaid account has now been placed with a collection agency.

The pattern I present here typifies what will occur in the first 6 months of not paying your credit card with most card issuers. As you can see, there will be some opportunities.

For many people faced with the inability to pay their credit card bills on time, all the time, it can make sense to capitalize on these opportunities. You should look to optimize your success by:

  • Following an intelligent design that can be tailored to your specific set of financial circumstances.
  • Design a plan using information about what each of your specific creditors will do and when.
  • Be prepared to adjust. Your creditors may change their recovery policies requiring you to tweak your plan.

You can learn more about how charge off can be friend or foe by following the our continuing series on the topic.

If you would like to speak with someone who can assist you in determining what your next best step to getting out of debt may be you can reach me at 800-939-8357, choose option 2, or submit a consult request form.

If you have questions about how to handle credit card customer service and debt collector calls in this early stage of collection you can post in the comments below for feedback.

Filed Under: banking practices, debt collection

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About Michael Bovee

Michael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.

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Comments

  1. Alex Viecco says

    December 17, 2010 at 11:44 pm

    In a time when consumers need the most amount of help it is nice to see good valuable information given to the consumers.
    With all the negativity in the economy today, most people have forgotten the consumer.
    I believe businesses have prayed on ignorance for so long it seems that it is the focus for many companies including the banks.
    The information here is so good and informative, I hope people can appreciate the source and the desire to educate.
    Thanks Michael and keep it up!
    Alex

    Reply

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