what happens when you stop paying your Credit Card
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- čas přidán 28. 12. 2020
- The good thing about credit cards is that they help you build credit quickly. But they can also land you in massive debt, late fees, and stuck paying them interest for years if you are not careful.
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1. Late Payment on your account and also charge you interest if you carry a balance ( potential interest increase )
- This late fee is usually for around $35 on average
- And the good thing for banks is that they made around 12billion from these sort of fees
- Also from interest they made around a 63.4billion dollars ( a lot of money )
Now the big problem is this:
- It doesn’t feel like it’s a big deal to pay $25 minimum payments and $35 fee and also the interest
- But the truth is that they make 20% in interest from you and you can expect to make maybe 10% from the stock market
- It means that this is a game that when you play it this, theirs is no way you are going to win.
Avoid how:
- If you already got a late fee, you call in and ask for one-time forgiveness and they will forgive it
- And also you always pay your balance in full to avoid being charged interest
- But keep in mind that the average person is still overspending when using credit cards
Tip: also that late payment gets sent your credit score and your credit will get hurt because payments account for 35%. ( I guess that’s how they came up with the 35$ fee ( stays in for 7 years )
Tip 2: if you keep doing this, they will your interest in purchases even more, because you become a high-risk client.
2. Two or 3 More No payments
- They start to block your credit card from being used
- And they will still continue to report the late payments ofcorse
- And also charge you interest and raise it too obviously
Now by this point, you will start getting the Call:
- Hello Tommy you haven’t paid your credit cards in awhile is everything okay and can you make a payments
- Because if you don’t your account will be closed and your credit score will be messed up
- And most people by this point are in the hole.
But this is when you might want to negotiate with them:
- You explain to them that you can't make your payments ( and if they can lower it and make a payments plan without charge interest )
- And now if you are really good at negotiating you might get away owing less money, having a good amount of time to pay pay
- And they will negotiate because the alternatives is to send you to collections and sell your accounts for pennies on the dollar either way
3. 4 late payments or more ( charge off )
- This means you are bad clients and are very unlikely to pay ( back in the day they use to send you to jail)
- But these days you get sent to collections
- Or they might just sue you and try to get wage garnishment up to 25% and that’s not something you ever want on your credit score
And something worst is that:
- Once they charge your account you will receive a notice from the IRS
- Letting you know you will owe taxes on it 1099-c
- And then things start to get tricky
4. Overall by this point these are bad
- Your credit score is trashed, but you can file for bankruptcy if you want ( but that will stay with you forever )
- Or you can settle with collections and then wait for the charges to be removed in around 7 years
But this will make it really hard;
- To qualify for a loan on a house, car, and more.
My suggestions:
- Use a credit card just for automatic bills internet, apple music, and Netflix
- And set to auto-pay and you will build credit
- And just your debit card and cash ( if you need more money you need a better job or to lower expenses )
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Don't be like me, slowly snow balled to $30,000, paying at least $1,000 a month in MINIMUM payments, now I'm struggling to pay my bills from last month
Did you finally paid it off ?
I pray anyone that sees this is successful in life...♥️
Ayeee
Thank you❤️
Same to you✨
Thank you 🙏🏽 same to you
Same to you! Thanks!
Credit card debt is the worst
Agreed
Simply, I don't pay. I prefer to get paid in checks. So I just cash them. My stuff is in my kids name, so there's nothing to sue and nothing to garnish.
I'm so happy that I started building credit late in life. I know I missed out on the many advantages of having credit, but my younger self was not responsible or mature enough to understand and handle credit. I was not paying my bills at all because my mother didn't and I thought that was okay because I thought there was no consequences. Now that I know everything I need to know about credit, I raise my credit from poor to fair and now I'm creeping upwards to the 720 range. I want to be completely debt free at some point.
Step by step
I love your courage and expression i believe we all need help in one way or the other that why I will recommend www.helpcare.tech for you
@@jefferywest1360 tell me more,I need help too. I will follow the link
almost forgot to mention that potentially once your accounts is charged off, you will get a 1099-c form from the irs, where you might be liable for some of that
Cancellation of debt is a form of income and is taxable!
Not if done by professional law firm with a waiver…
Are you kidding me I’ve literally seen people buy houses and new cars like a year or two after bankruptcy. Multiple people! Literally living better than me trying to do the right thing!
Yeah same here
CONGRATULATIONS TOMMY ON REACHING 300K SUBS!!!!!👏🏾👏🏾👏🏾👏🏾👏🏾
Always reassuring to see a being helping others 🖤 nice work brother
Always 😎 and thank you bro
credit cards are illegal, if you stop paying a credit cards then you get a tattoo being 7 years bad credit. you don't go to jail, you don't get your paycheck garnished, you can file bankruptcy. Yea! all in all you just begin to live within your means lol emagion that hmmm, if we all lived within your means not to many folks out there would have near what they have. Yea! you only get what you can buy period, for the rest of your life...what would the US look like with no credit card...don't get a credit card ftom your established bank account, don't get a credit card from the bank you got your car loan from...lol. that happens, yea! the banks are doing that now, that way if you are paying your Carr off but don't pay off the credit card the banks takes your car for collateral...lol...be carefull don't get cought in the spiders web. blessings, just win the lotto.
Dude...what??? I declared bankruptcy in 2006...2 years later my credit score was almost 700...new car...new credit cards ...etc etc... Why are you saying such things...???
Theoretically how much did u spend before bankruptcy
Same here but in 2018. The only thing it was harder to rent but just bring more cash to the table. Bankruptcies aren’t that bad
A lot of lenders don’t want to negotiate,til you mention bankruptcy. I would go nuclear and learn from it & go forward on a clean slate.You can rebuild around your bankruptcy and have a good score in about 18-24 months.
He doesn’t know what he's talking about lol
I bought a house this year with a 1,000$ hospital bill in collections. Been in there for 3 years. Was surprised they dint even bring it up.
with sufficient downpayment they overlook even credit sometimes since they can always force sale the property and foreclose.
They don't look at hospital bills only what you bought on credit
Filing bankruptcy is not all bad. Be sure to get yourself 3-4 secured cc after you filed bankruptcy and pay on time for the next 3 or 4 years after and your credit score will go back to 700 in no time. I have seen many people getting approved for regular cc 3 years after bankruptcy if only they hop on the secured cc train quickly.
Yeah theirs always a way to bounce back ( just a slow process )
Why would you repeat the same mistakes? Once you are debt free, live without credit. Debt only destroys you.
@chdearley can't do anything without it, it's a scam
You're an inspiration period
Thanks for sharing your comments
Make a note to my trusted trader, Manuel Sam to help you make more profits in bitcoin
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The leading system is based of selling people a product when they have limited knowledge.
It’s insane
45 years I dealt with no credit. I had a saying if you don’t have the money then you don’t need it. I always had money. I decided to get into credit and maxed my cards now I am always broke and giving all my money to banks for minimum payments. With my payment history at 100 percent I get denied for loans to pay off my cards. Screw credit I am about to give it up
Yea I hate that you never miss a payment in years and they deny you for a Loan to pay off all your credit after they send you a letter saying you’re preapproved for a a loan to pay off your credit lol
Exactly...Just build money on a Cash Card..make your Own Credit Card💳@@Chriswilson-vg6vp
Brother Tommy Thank You for the tips.
Got you 😎
Congrats on reaching your goal of 300k, you deserve it ! :)
Thanks for sharing your comments
Make a note to my trusted trader, Manuel Sam to help you make more profits in bitcoin
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His strategies are top notch....
Screw the credit card companies.
Not really man, just gotta be smart. Don’t spend more than you can payoff. I love credit cards.
@@panchovia that's easier said til something Major happens!
Not if they start increasing interest without notice@@panchovia
Senior mom 86 REFUSES to pay hers. She says she doesn't have any. WTH?
I am not a bot. Look up the FDCPA (15 USC 1692) and the FCRA (15 USC 1681) debt collection tactics are against the law. Calling, mailing, emailing, harassing, reporting negatively and a number of other tactics they use are against the laws above. Report these crooks to the CFPB.
I missed 5 I had lost my job in 2018 I was afraid because this was my first credit card and I was really trying to build credit but I end up paying it off and got out of debt but that's still on my credit
Bankruptcy doesn't stay on there forever it's 10 years for chapter 7 and 7 years for chapter 13. Not sure why you said that.
I agree
How do I fix my credit once is in collection
okkkkk 300k my boy 🔥🔥🔥‼️
Ayeee waiting for the end of the year to official announce it 😎
let’s get it !! 500k next my guy !!! prada you !!!
Thanks buddy
Thanks for sharing your comments
Make a note to my trusted trader, Manuel Sam to help you make more profits in bitcoin
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His strategies are top notch....
How do you get the late fee removed from your credit report? Or you just wait 7 years!? 😵
When you quit making credit card payments, you can be charged late fees and higher interest rates and take a hit on your credit. If delinquency continues for more than a few months, your account may go to collections or be charged off, and you may be sued.
Thanks for sharing your comments
Make a note to my trusted trader, Manuel Sam to help you make more profits in bitcoin
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His strategies are top notch....
Then it’s time for bankruptcy protection.
How long till goes delinquent I’m be 3 months behind
*You stop paying your credit card and credit score turns to* 💩💩
Lol 😂 big time
Mine did because i hit a hard time. It’s going back up now. It’s very slow though. It’s a nightmare.
Thats why you stop worrying about credit and being a corporate slave
I don’t care about my credit score
Lol garnish your wages? What if you're self-employed? They go after your bank account? What if you have several bank accounts? How would they even find all of them? I don't think they can. Anybody have a suggestion on this?
I have pioneer and I stop paying it so how can I reopen my account
The goat🐐🐐🐐🐐❤️❤️❤️❤️❤️. Ok. So I have a credit card debt of 10k which increased to 11k due to interest. But I was able to negotiate a settlement of 7k other payments monthly. After all is paid off will it help my credit go back to the way it was.
Will the same credit give you another chance after your account want to collection and you pay off that collection if they going remove it from your credit score history.
And when your credit score want back to 730+ are they going give you another credit after what happened or they will put you in black list!
Update ?
You're using way to mamy scare tactics. I settled on a bank of America debt worth 60k for 30 k. It's no longer on my credit after 2 years, my credit is 715, and irs did not send me any forms even though our income at the time was quite high to begin with. I'm tired of people scaring everyone into paying credit cards when they barely have money to eat. Sure, you'll get sued sometimes but get a lawyer who doesn't charge fees until the end and they'll 100% of the time make sure you don't actually ever have to step foot in court . You'll settle and save years of interest and pay close to 50%.
I'm sure the IRS received forms from Bank Of America. So be prepared. Sometimes it takes the IRS a few years to catch up, but when they do you'll have a big ass tax bill. That's actually income in their eyes. Start saving money in case that happens. The IRS just got 80 billion dollars of extra funding over the next ten years so chances are their computer systems will catch more and more.
so you agreed for them to remove it from your credit report? Did you haveto actually use a lawyer or did you just settle over the phone a few years after? and did you just ignore them ? lol. I'm at a point where I want presence and I've been working so hard and not making progress from these high interest rates and yeah barely have money for my basic necessities. its so dumb.
Do you think if you ignore Capital one they'll eventually settle for half or will they garnish or sue me? Tyia
This helped me so much! Lost my job in April with downsizing due to COVID. Now don't have any money at all.
Call them and ask what they can do to help because of COVID. ( don’t wait )
And now there’s not much jobs either. And pretty soon no jobs because of AI technology
To solve it :
Bankruptcy.
I’m tryna see if they freeze my acct im behind 2 months and i need like 1-2 months of not charging me to catch up . I had stuff come up recently and am behind a decent amount of money
Will they garnish social security?
9:20 is SOLID GOLD ADVICE
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Make a note to my trusted trader, Manuel Sam to help you make more profits in bitcoin
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His strategies are top notch....
@@graham7267
NO!
? My credit card closed because I went over the limit so I paid the balance off but no longer have that credit card anymore but how many points do I lose on my credit score ? Oh and by the way I have another credit card I had 2 credit cards but like I said I lost one credit card because I went over the limit and they closed it.
Most likely minimal,depends on your credit utilization.
Once your debt goes to collections you actually are done. All you have to do is send a DEBT VALIDATION LETTER... research more about this.
It's not that simple. It'll just come back verified.
I would disagree with your statements about bankruptcy. I declared a chapter 13 bankruptcy over 4 years ago, and I had no trouble at all getting regular (not secured) credit cards just 4 months after the bankruptcy was discharged (finalized). I have also been able to get an unsecured loan through a local credit union. I now have ample credit, and my credit score has been over 700 for years. And, the bankruptcy process itself was fairly easy and fairly painless; it was nothing like the horror stories I've heard.
I stop doing my business so so I wasn't having payments going to my card so they blocked my card
Tommy please direct memto your video about late payments and closed accounts!
What do you mean ?
@@TommyBryson Sorry wrote that to fast. Was looking for a video to help me
with removing closed accounts off my credit
If you arrange to pay them a lump some instead of selling it to collections would you need all that at once? Common sense tells me yes, Hensel the name "lump sum" just need someone to reiterate please.
Yes always be prepared for cash in advance,learned from Dave Ramsey.
I owe 34,000 on AMEX, the interest payments are $1200 and I'm on the 29.99% penalty rate. No way to get out of the debt
Transfer that to a card with a promotional 0 percent if you can.
@mylifewithkids5286 Tried to, I can't get approved
Beyond finance call them
What dude I always wondered what happened to the kitten Indiana Jones g willikers.
I hate paying interest!
Cant win paying someone 20% ( just put a small bill on it and forget about it )
Please help me. I've been waiting for ssdi for over a year. I'm now 80k in debt. I've been paying with my biyfriends income but I'm unemployed. But my discover card just dbl the interest up to 800. I can't do bankruptcy, I've tried but I sold a house a year ago. I don't know what else to do.
File chapter 13 bankruptcy,it’s basically a payment plan.
Why you can’t file bankruptcy? What house sale has to do with it?
so basically I'm doomed either way
Unrelated to topic: I want my money to grow and only found out that my “savings plus” 🙄account only offers me a .15% APY! But the only thing I like about the account is that the money is insured! My fixed income mutual fund Gives better return but no insurance! I know you don’t give advice but helpppp......... I have anxiety next thing the institution crashes and what happens to my hard earned investments??
I have link to my portfolio on m1 finance and exactly what I invest into and that’s what I would do. And remember fdic is great but brokerages also insure your money ( it’s just that investments can fluctuate) but that’s part of the game.
I have 100.000 in credit card debt I had a trucking company and it went under now I owe all this debt
Do I file bankruptcy now or wait
I’m not ever miss a payment but now my truck company is gone and I have no income
Thank you
I would talk to bankruptcy attorney immediately
Live without credit.
Is better to bankruptcy??? Good thing here in Texas can not touch your wages
Me:sees tomys video,and wants to be first
My internet: Don't even think of it
Lol 😂 part of the game
Will they sue you for 3k?
Already Paid my platlium card in FULL this... Morning why avoid High interest lol 🙃🙃
I wish I knew this couples years ago bro
Thanks for sharing your comments
Make a note to my trusted trader, Manuel Sam to help you make more profits in bitcoin
+1-5-0-9-4-0-8-1-2-6-5
His strategies are top notch....
Not much of what you say is true. I stopped paying my debt when Rona sue to job loss. All that’s happened in the las 2 years is threats and harassing phone calls. Idk if it makes a difference with how much I owe but not much has happened, my credit is back up to 680.
Literally my story is close to the same as yours
@@winterkiyomi still nothing has happened, hopefully I can continue my life and build my credit back up! Best of luck to you!!!
@@joshuab464any updates?
@@joshuab464: If you don't mind how much did you owe? My rent went up $500 more and am disabled living off of social security so I can't afford the payments anymore.
you shouldn’t get off subject from the tittle
YOU HAVE AN EMERGENCY OUT OF YOUR CONTROL YOU ARE SCA-REWD...NO MERCY, LATE PENALTIES, BLACK MARK ON YOUR NAME, WITH ZERO GRACE...
Or at least it's not like on the PC game of RDR2 which takes place in 1899 where you playing as Arthur go on a mission to collect a debt for Leopold from someone who owes him money and when he doesn't have the money then you beat him up and go into their home and take anything you see.
What If You Can’t Pay Because Of Unemployment Due To Covid ? Still Watching That’s Why I Asked lol
Lol great questions, you gotta hit them up before you get late payments. ( let them know what’s going on and that you are unemployed now, and they can help )
I Have 😅😆. They Say It’s Nothing They Can Do Even After I Let Them Know I’ve Paid On Time Or Before Time & Have Never Missed Until Now ..It’s A Cold World lol ..I Have Been Looking Into Affiliate Marketing & Trying To Figure Out How To Make Some Kind Of Cash While Still Keeping My Morals 😆 ..Thanks For Answering Though ! 🙏🏽✨
Yeah they don’t care about this pandemic...the most common answer I received is they will give you one month....Hellloooooo, this has been going on longer than a month. It’s a vicious, terrible mess and hard-working, honest people are suffering...I haven’t read the stimulus Bill but I wonder how much the banks will receive while they attach late fees, penalties, etc and tank people’s credit score😡
@@moonglo4022 Yeah It’s Really Sickening Tbh ..Especially When They Constantly Harass You With Phone Calls & Voice Messages After Calling Them To Explain Whats Going On Even Though Everyone Can See For Themselves😅😬. On Twitter Someone That Lives In New Zealand Said They Got Paid $582 (Or Something Around That) Per Week To Help Them Out. I Just Don’t Understand Why That Couldn’t Happen For Us ? When So Much Money Is Going Out Of The Country To Help Others ? Not That I Don’t Care About Others But I Think America Should Help Americans First ? 😅
My dad is being sued. He’s 72 and his only income is social security, so he can’t afford anything. He got really sick and can’t work anymore that is why he couldn’t make payments anymore.
Sued by who? And SS cannot be garnished I think. ( verify )
@@TommyBryson Credit card with JP Morgan chase.
@@Khaliando Social security income cannot be garnished. Have grandfather contact legal aid where he lives and see if he can get help due to his age and income.
they CAN NOT sue if his only income is pension or SS, that is ILLEGAL
woahh lol
I don’t give a sh*t about my credit scores I m debt 50.000$ and I’m not gonna paid 🤣🤣🤣
That’s not good, that’s basically stealing. What’s the debt for ?
@@TommyBrysonnigga what they the ones stealing got u borrowing ur own money.
@@TommyBryson your federal govt owes 34 trillion and that’s ok . It’s terrible people should pay their debt but we live in a country where the govt does what they want but expect you to play by the rules.
How do I invest in credit card companies
Use Robinhood, Webull, or M1.
Just make sure you understand the underlying assets of the institution and how it compares to the competition
keep buying stocks lets go!
Not when you got no $$ :(
@@Mistyfgdf so make money! start making youtube videos or sumin
@@ThinkMoneyBenny I already do.
Are you Haitian? That accent pulling through
Dominican
Who do you negotiate with? Bank or credit card ?
♥️🔥♥️🔥♥️🔥♥️🔥♥️🔥♥️🔥♥️
They sued me and I still can't pay. I have to call them tomorrow and tell them they have to write it off. No negotiation, I have no money and no job. I never plan on borrowing money again so my credit score is worthless anyway.
How much did you owe
@@joshuab464 $15,000 I went through a debt management company who had me pay for a lawyer, but then I couldn't make the payments so the debt management company closed my account. Since the lawyer stopped getting money, he also closed my case. Haven't heard from anyone or paid a dime since. That was 6 months ago. I called the credit card company about it and they said the lawyer was handling it, but that is the same lawyer who closed my case. lol
@@KennTollens I also owed $15k, never paid it. Ended up using Lexington to dispute it and eventually it was just charged off
Get to the point
Share Excellent Credit Matters, Credit Consulting CZcams - Accounts Reporting .... Experian, TransUnion, Equifax Deleted Removed Rebuilding Credit Union Bank Relationship
FBI: freeze and don’t fucking move.
Lol 😂 imagine
Same here I wanted to be first on this
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Dude you are wrong! You can stop paying your unsecured loans and the only thing that happens is your credit score is wack. 7 years later your good once you get your score back up
You didnt go far enough So after you get sent to collections but dint have a job so they cant garnish wages. And then go to jail...after your free 😅😅😅 cheat code
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