What Can Happen When You Don't Pay Your Credit Card Debt?

I forgot to transfer money from my savings to my checking after making an American Express card payment.  I have never been late before in 5 years but the bank rejected the electronic draft.  AE called me a few days later and I apologized and had them send it through again (making sure the money was there).  They now jacked my interest up to 25%.  They just screwed themselves since I'm not paying them one penny now or ever again.  I already own my home and have two fairly new cars so it's not like I will need to apply for credit for the next 10 years.  Just my 10 cents.

Credit Card Debts are referred to as unsecured debt. What this means is that they are not secured against any real property. They cannot repossess your car, your house or other assets as they do not have a lean on these properties. This is the very reason why credit card companies generally offer credit at interest rates that are substantially higher than mortgages or car loans. What these credit card companies can do is damage your credit report. This will dissuade other lenders in the future from either lending you money or extend credit at a higher rate of interest. There are certain cases in which a credit card company may resort to a court procedure by way of which they can put a freeze on your bank account, but they rarely do so, preferring to make a settlement by which you can pay back part of the amount as final settlement.

A credit card is technically an invitation to use the credit line of some one and normally it's the bank who offer that credit line. In simple words, banks offered money to use for your daily household buying and purchase and your liability is to pay at a certain due date back to the bank to avail the same credit line for the next time period. Everywhere in the world, banks offer credit lines and some  items require interest on actual buying and some not. For example: daily l groceries and general merchandise does not have interest so the user has to pay the actual amount to bank but for some items like electronic and gold, the user has to pay a certain amount of interest with the original amount back to the bank. This is the working of credit card and now if some one does not pay the due amount back in full, banks will not push you to do so as they will ask you to pay only a small portion of the due amount and balance payment in installments with interest. In the same way, a user will use his credit card in the next time period and is also liable for previous instalments with interest. It's a vicious circle of debt and in a hidden way, the bank got you trapped in a debt circle and the user will never get rid of that circle. The bank will receive the actual consumed amount soon from your instalments but the user will pay the interest for his entire life as interest will be added and increased every  time  payment is due.

I am in this fix lost my job 6 months ago cant even get part time work paid cards till all savings gone I called banks told them my problem so far they have been ok just said let them know if and when i get a job and most said good luck in finding a job.

Attorney office for a credit card my husband has is calling and said it is in court proceedings. He lost his job and we have no assets. What else can they do.

They ruin your credit score and history.But they can not put you in jail or anything.Most likely they try to negotiate with you for the dept...

I have had financial problems and was less than 10 days late for 3 months. The credit card company raised my APR from 7% to 20.50% can they do this?