Bill Ranson

What Happens If I Don’t Pay My Credit Card Bills?

When facing amassing credit card debt, it is not uncommon for many individuals to ask “Why pay my credit card bills?” Granted, while this option is there and it may give you some extra cash for a few months, here are a few of the major repercussions you might be facing should you decide to go delinquent on your monthly payments:

1. Creditor/Collection Calls:

This might be the worst part of a delinquent debt-the constant calls from creditors demanding their money. Collectors have been known to call 8-10 times a day, at home, at work, on your cell phone. And these are the ones who follow the rules. Creditors have been reported to speak to bosses, neighbors, and family members (which of course is illegal). Once they get you on the phone they can be even worse. They use a number of psychological techniques to demean you and force you to give them checking account numbers or other bank information. In other words, they will do anything they can to make you pay. (Please keep in mind that your rights are protected by the Federal Trade Commission. To find out more information, please consult the Fair Debt Collection Practices Act.)

2. Damaged Credit Score:

Creditors will begin to report missed payments to credit bureaus which will inevitability have an affect on your credit score. These marks can be removed once a settlement is reached or payments are made.

3. Interest/Late Fees/Over-the-limit fees:

Not paying does not mean that interest will stop accruing. Once you go delinquent, many creditors will immediately raise your interest rate to the highest possible interest rate, about 30%. In addition, they will charge late fee penalties ranging between $30-50, and if your balance exceeds the credit limit, they are more than happy to tack on over-the-limit fees.

4. Legal Action:

Eventually, if a debt becomes very delinquent, a creditor may opt to take legal action which can result in liens, garnished wages, or other legal judgements requiring you to pay your debt. However, this is typically a long and complicated process that companies would like to avoid. Nevertheless, it does happen.

If you are considering not paying your credit card bills, it may be the perfect time to considering professional help. There are a number of financial companies that can help you find a Credit Card Debt Relief solution to your financial dilemmas. Why wait? Contact one today, as the first step in finding a solution to your economical problems is usually asking for help.

Scott Wallitsch is a certified IAPDA debt arbitrator for DebtorSolution. He provides Debt Settlement and Debt Consolidation advice to clients who are looking to become financially free and economically independent.

Lower usage means lower bills, but there are numerous other steps to follow that can help reduce electricity costs even further.

Investigating alternative gas and electricity suppliers can help ensure that you are getting the best value for your money.

Lighting is another area in which consumption can be reduced. It is advised that you use a fluorescent tube light in the kitchen; these provide long-lasting light and have low running costs. Switching lights off when you leave a room is also recommended.

Fitting outdoor lights equipped with a motion sensor will help minimise the amount of electricity being used. The key is to optimise your electricity usage. That way, conservation becomes second nature. Low energy usage bulbs are available at most high street supermarkets. If you still use old bulbs, now is the time to upgrade. These low energy bulbs last up to ten times longer than conventional bulbs and cost approximately 80% less to use.

Leaving appliances on standby is another habit to avoid. Televisions, DVD players, computers and chargers are the chief culprits. If the appliance is not in use, turn it off completely.

Investing in energy saving standby plugs is also recommended. These handy appliances turn your televisions, computers and laptops off automatically, thereby reducing unnecessary energy consumption.

Making use of solar power can also help you reduce your dependence on gas and electricity suppliers even further. By generating your own electricity you will be able to provide light and even heat without having to pay utility bills – a great savings strategy.

These energy savings tips are provided by Age Concern, a leading UK home insurance provider. Follow these steps to manage your home’s electricity usage more efficiently, without having to necessarily change your gas and electricity supplier.