What Happens If You Don’t Pay Your Credit Card?

Last updated 07/09/2026 by

Ante Mazalin

Edited by

Andrew Latham

Fact checked by

Andy Lee

Summary:

Not paying your credit card triggers late fees and a higher interest rate, then damages your credit, and eventually leads to a charge-off, collections, and a possible lawsuit.

The damage builds in stages, and each one gives you a chance to step in.

Late fees and penalty rate: One missed payment adds a fee and can raise your APR.
Credit damage: A payment 30 days late is reported to the bureaus.
Charge-off: After about six months, the issuer writes the debt off and sells it.
Collections and lawsuits: A collector can pursue and sue you for the balance.

Missing a credit card payment is easy to do when money is stretched across too many bills at once.

The consequences stack up on a predictable schedule, and the cheapest time to act is early, before a late payment becomes a charge-off.

Get Competing Personal Loan Offers In Minutes

Compare rates from multiple vetted lenders. Discover your lowest eligible rate.

Get Personalized Rates

It's quick, free and won’t hurt your credit score

What happens if you don’t pay your credit card

If you do not pay your credit card, the issuer charges a late fee, may raise your interest rate, reports the delinquency to the credit bureaus at 30 days, and charges the account off after about 180 days.

Once charged off, the debt is usually sold to a collection agency that can call, report the account, and sue you for the balance.

You still owe a charged-off debt, and it can follow you for years, but every stage before a lawsuit leaves room to negotiate or set up a plan.

The credit card nonpayment timeline

Credit card consequences arrive on a fairly standard schedule, though the exact timing depends on your issuer.

Stage	What happens
1 day late	A late fee of roughly $25 to $41 is added
30 days late	The missed payment is reported to the credit bureaus and your score can drop 50 to 100 points
60 days late	A penalty APR, often 29.99% or higher, can apply to the balance
About 180 days late	The issuer charges the account off and typically sells it to a debt buyer
After charge-off	A collector can pursue the balance and, in many states, sue to collect

What a charge-off means

A charge-off is the point, usually around 180 days of missed payments, when the issuer writes the debt off its books as a loss. It does not mean the debt is forgiven.

The balance is typically sold to a debt buyer for a fraction of its value, which is why collectors often accept a settlement for less than the full amount.

A charge-off is one of the most damaging entries on a credit report, and it can stay there for seven years from the original missed payment.

Can you be sued or have your wages garnished

Yes. A credit card issuer or the debt buyer that owns your account can sue you, and if they win a judgment, they can garnish your wages, levy your bank account, or place a lien, depending on your state.

Unlike the IRS collecting unpaid taxes or the government collecting defaulted federal student loans, a credit card company must sue and win in court before it can touch your paycheck.

The statute of limitations on credit card debt runs three to six years in most states, measured from your last payment. Making a payment on an old debt can restart that clock, so confirm the timeline before you respond to a collector.

What to do if you can’t pay your credit card

Move before the account charges off, since your options are widest while the issuer still holds it.

Call your issuer and ask about a hardship program, which can lower your rate or waive fees.
Pay at least the minimum on time to stop new late fees and further credit damage.
Set up a debt management plan through a nonprofit credit counseling agency.
Negotiate a settlement or payment plan, especially once a debt buyer owns the balance.
Prioritize this debt against others based on interest rate and collection risk.

Pro Tip: Call your issuer for a hardship program before you miss a payment, not after.

Most major issuers have hardship programs that can temporarily lower your interest rate, waive fees, or reduce your minimum payment. They are far easier to qualify for while your account is current than after it has charged off.

Debt relief options for credit card debt

When the balance is beyond what you can repay on your own, structured relief can reduce the total or reorganize it into one payment.

A debt management plan through a credit counselor rolls your cards into one monthly payment at a lower rate, while debt settlement negotiates the balance down, usually with credit damage along the way.

For deeper trouble, bankruptcy can discharge credit card debt entirely. Comparing your debt relief options helps you match the approach to how far behind you are.

Key takeaways

A late payment is reported to the credit bureaus at 30 days and can drop your score 50 to 100 points.
A penalty APR of 29.99% or more can apply after you fall behind.
The issuer usually charges the account off around 180 days and sells it to a debt buyer.
You can be sued, but a credit card company needs a court judgment before garnishing wages.
The statute of limitations is three to six years in most states, and a new payment can restart it.
Hardship programs, debt management plans, settlement, and bankruptcy can all reduce the damage.

Frequently asked questions

Can you go to jail for credit card debt?

No. Credit card debt is civil, not criminal, so you cannot be jailed for owing it. The worst outcomes are a lawsuit, a judgment, and collection actions like wage garnishment.

Does credit card debt go away after 7 years?

The negative marks fall off your credit report after seven years, but the debt itself does not disappear. It stays legally owed, though a collector generally cannot sue you once your state’s statute of limitations has passed.

Can they take your house for credit card debt?

Rarely, and only after a lawsuit. A creditor who wins a judgment can place a lien on your home in many states, but forcing a sale over unsecured credit card debt is uncommon, especially where homestead protections apply.

If credit card balances are outgrowing your budget, comparing your debt relief options before a charge-off can keep one missed payment from ending in a lawsuit.