What Happens If You Miss a Credit Card Payment?

When you work with a 4 Pillars debt consultant in Victoria, you likely have a plan in place for becoming debt-free. Unfortunately, there are still mistakes you can make along the way while working hard toward your goals, especially if you’re not working with debt consultants in Victoria. If you fail to make your credit card payments on time, it’s critical to understand what ramifications you can expect.

Late Fees

You will immediately notice a late fee present on your credit card if you fail to make the payment by the due date. The late fee is often around $40 and begins to accumulate interest. You can try to contact the credit card company to remove the charge. Still, they typically don’t offer forgiveness more than once. 4 Pillars debt consultants can also advise you on additional steps to take to remove late fees.

Low Credit Scores

Once you have at least one late payment, it affects your credit score. A 4 Pillars debt consultant in Victoria can help you set up reminders and automatic payments to ensure you make the payments on time. Consultants from 4 Pillars will also educate you about how skipping payments can impact your credit report for six years.

Legal Action

When you fail to repay your credit cards over time, you can expect legal action from the lender. Not only will your debt go to collections, but it can land you in court. The lender may even place a lien on your bank account, making it challenging to access your funds. You need to consult the services of 4 Pillars in Victoria to determine what options are available if your lender is taking legal action or garnishing your wages.

Contact us at 4 Pillars to learn more about how we can help you recover from common debt-related mistakes.