Defaulting on Credit Cards
Credit cards are extremely convenient in today’s society. With them you can buy things that you need but cannot usually afford to buy in cash. These large purchase items may include dishwashers, dryers, and furniture pieces for your home. However, some people do not realize that they will not have the money needed to pay off their bills—even when paid off over time. In these cases, some individuals may end up defaulting on their credit cards.
Each month you have to pay off your credit card bill. The bill will have to paid on the due date that is set by the credit card company. It is rather easy to default on credit card bills. Paying off your credit card even one day late causes your account to incur late fees. Late fees start at thirty five dollars a day and every day after that the bill will accrue interest.
If the bill continues to be unpaid for one billing cycle then the company considers the credit card to be defaulted. A billing cycle for a credit card will usually be sixty to ninety days. After one hundred and eighty days the bill will be sent to a collection agency that will come to you for payment. These late payments will affect your credit score in a very negative way. A defaulted credit card looks very bad on your credit score and will stay on your credit score for a very long time.
If you are having difficulty paying your credit cards on time, filing for bankruptcy might be a viable option. To talk to an experienced Birmingham bankruptcy lawyer, please feel free to contact Greenway Bankruptcy Law, LLC today at (205) 324-4000.