Been there. Had a Walmart credit card with a $3,000 balance. Stopped paying, ignored all the calls, and forgot about it. Then I got served with court papers.
I had to show up in court, got put on a payment plan, and finally paid it off. That was 10 years ago, but it was embarrassing and stressful. I wouldn’t recommend going that route.
People forget how fast fees and interest add up.
By the time a collection agency offers you a settlement, your balance will be way higher than what you originally owed. You might think you’re getting a deal, but you’ll end up paying more in the long run. And your credit will be wrecked for years.
I worked in debt collections for 10 years. If you can afford to pay, the bank will find out, and they’ll sue you. Once they win, court fees and attorney fees get added to your debt, making it even worse.
Anyone saying banks won’t sue doesn’t know what they’re talking about. If you’re in trouble, try to negotiate with the bank BEFORE it gets to that point.
If skipping payments was that easy, nobody would ever pay their debts.
Your credit will get trashed, the bank will either sue you or sell your debt to a collector, and they might sue you too. You can sometimes settle for less, but not as much as people think, especially if you still have a job.