S/O What happens when you don't pay up c c debt ?

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Forum -> Household Management -> Finances

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amother

Mon, Jan 16 2023, 11:01 pm

Bh we are responsible spenders and always spend with our c c and always pay on time. We never buy more than we can afford and spend with measure.
Was just wondering since it was posted on the ok the other thread that many people are in c c debt... so what happens practically then (may it never befall any of us) ? I know In terest and late fees are charged (which I don't know how it works) and credit score goes down.. but practically how do they expect the creditors to pay back for if they practically can't afford it and the interest just increases more and more ?
(Also as a side note is it really bad advice if someone needs to borrow money (to build a business let's say) and uses their credit card for a loan ?

Moonlight

Mon, Jan 16 2023, 11:05 pm

Yes it's a horrible idea. Credit card interest rate is like 17% lowest. If you need a loan, you can get one at a much better rate. Credit card companies make their money off people who don't pay on time. Don't fall into that ever

amother

Mon, Jan 16 2023, 11:06 pm

Moonlight wrote:

thanks. And those cards which advertise for zero interest first 18 months.. what is that ? Are there additional fees to that ?

amother

Chambray

Mon, Jan 16 2023, 11:18 pm

amother OP wrote:

thanks. And those cards which advertise for zero interest first 18 months.. what is that ? Are there additional fees to that ?

As long as you pay the minimum balance you are fine and can even look at it as a interest free short term loan. But you need to make sure you have the funds to pay it in full when due and not pay interest

Trademark

Mon, Jan 16 2023, 11:28 pm

Some people when they can't pay off their debt settle with the cc company for cents on the dollar.

amother

Chambray

Mon, Jan 16 2023, 11:33 pm

Trademark wrote:

Some people when they can't pay off their debt settle with the cc company for cents on the dollar.

No offense, this is a bad plan.

Trademark

Mon, Jan 16 2023, 11:35 pm

amother Chambray wrote:

No offense, this is a bad plan.

Of course nobody should borrow with this in mind.

But the OP asked what happens to people if they already have cc debt that they can't pay off.

amother

Bottlebrush

Mon, Jan 16 2023, 11:37 pm

Some people had no choice but to get into cc debt, for example medical debt or other actual emergencies.

It is better to borrow from friends and family, take out home equity loan or any other kind of loan before cc.

amother

Slategray

Tue, Jan 17 2023, 4:40 pm

If you own a house they can put a lien on your property. Makes it hard to sell.

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