What happens if I default on a credit card?

Defaulting on a credit card in Wisconsin is the act of not paying the balance off of the credit card. Defaulting on a credit card can have serious consequences, depending on the credit card company. The credit card company can turn over the debt to a collection agency. The credit card company can also sue the debtor for the amount owed. The debtor may be responsible for the unpaid balance plus any court costs associated with the lawsuit. The judge has the discretion to order the debtor to pay a judgment amount that is higher than the original debt owed. This judgment amount would be reported to the credit bureaus and could remain on the debtor’s credit history for up to seven years. In addition, the debtor may also experience an increase in the minimum monthly payments, late payment fees, or other fees that the credit card company may impose. The debtor’s credit score could suffer if these penalties become excessive and payments are not made. If a debtor is unable to pay the full balance at any time, the credit card company may accept a one-time payment in order to close the account. However, the debtor may still owe the remaining balance and the credit card company may pursue legal action if necessary. Defaulting on a credit card can have serious consequences. It is important for those who have credit cards to understand the terms of the agreement and pay off their balances in full and on time.

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What happens if I default on a credit card?

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