What happens if you stop paying your credit card… do they settle later

If you owe $4,000 on a credit card—let’s say with Bank of America—and just stop paying, what happens?

Do they keep calling for a while, then eventually offer you a deal where you can settle for less? Or do they just take legal action? Let’s say the person still has a job.

They’ll keep calling for months, and if you ignore them, they might sell your debt to a collector. If you still don’t pay, they can sue you, and if they win, they can garnish your wages or freeze your bank account. Your credit score will take a big hit too.

Try your best to keep paying something. If you stop, it will trash your credit score. After a while, a debt collector will probably take over, and sometimes they do offer settlements, but I wouldn’t count on getting 50% off. If you don’t pay even then, they might sue you, and if they win, they can garnish your wages.

That said, some companies don’t bother suing for smaller amounts, so it really depends. But if you stop paying, expect it to stay on your credit report for seven years.

@Sam
Plenty of people get sued for debts under $1,000. It’s not as rare as people think.

Sky said:
@Sam
Plenty of people get sued for debts under $1,000. It’s not as rare as people think.

Yeah, I got sued by Discover for $1,700. They don’t play around.

Remi said:

Sky said:
@Sam
Plenty of people get sued for debts under $1,000. It’s not as rare as people think.

Yeah, I got sued by Discover for $1,700. They don’t play around.

Discover goes after people HARD.

@Sage
Amex is even worse.

Bliss said:
@Sage
Amex is even worse.

Amex keeps emailing me about lower payoff offers, but I only owe like $1,500.

Sky said:
@Sam
Plenty of people get sued for debts under $1,000. It’s not as rare as people think.

When I got sober, I had two default judgments and 17 collections. My credit score was 450. Took years to fix it, but now it’s over 700 and I’m looking at buying a house. It’s doable.

@Derry
That gives me hope. My score is low, but I’m working on it.

Cal said:
@Derry
That gives me hope. My score is low, but I’m working on it.

It’s all about staying consistent. The system is messed up, but you can work your way out of it.

Sky said:
@Sam
Plenty of people get sued for debts under $1,000. It’s not as rare as people think.

I got sued for a $750 debt years ago. They had no problem serving me papers. Went to court, made payments, and now my credit score is in the 820-840 range. It’s fixable.

@Sam
For $4,000? That’s more than enough for most banks to take legal action.

Keelan said:
@Sam
For $4,000? That’s more than enough for most banks to take legal action.

Anything over $1,000 puts you at risk of being sued. Some companies will even sue for less.

Not in the US, but here, the bank eventually sells the debt to a collector. Your credit score tanks, and the debt keeps growing with interest and late fees.

If it gets big enough—around $15,000 or more—they can take legal action, and you could be forced into bankruptcy. You can ignore the calls, but they don’t go away.

@Zuri
That sounds pretty similar to how it works in the US. If the bank doesn’t sue, the collection agency might. Either way, it messes up your credit for years.

After six months, the bank will charge it off and sell it to a collection agency. That’s when the real headaches start.

Speaking from experience… After three months, your account gets closed and your credit takes a hit. After six months, it goes to collections. A year or two later, they might sue, and then your wages could get garnished.

If you’re struggling, don’t ignore it. Call the credit card company and ask about a hardship plan before it gets out of control. I learned this the hard way.

They’ll take you to court if they think it’s worth the effort.

So… you’re asking how to not pay $4,000? Just go rob a bank while you’re at it.