Credit cards can be helpful in a pinch, but when the balance grows and payments become harder to make, it’s easy to feel paralyzed. You might think, “I’ll deal with it later,” or “I can’t pay it anyway, so what’s the point?”
But ignoring credit card debt doesn’t make it go away. In fact, over time, it can grow into something much more stressful and expensive. That said, if you’ve already missed payments or feel like you’re drowning in debt, you’re not doomed, and you still have options.
Let’s walk through what really happens when credit card debt is left unpaid and what you can do (even if it feels like things are already out of control).
The First Few Days: Interest and Late Fees Start Building
Most credit cards come with a grace period after your due date—typically around 21–25 days from the end of your billing cycle. If you don’t pay at least the minimum amount by the due date, your account becomes past due, and you’ll likely be charged a late fee. In addition, your interest keeps adding up on the unpaid balance, and many cards will also apply interest to any new purchases you make.
If this is your first missed payment, some issuers may waive the late fee if you call and ask. But from the very first day your payment is missed, your balance starts to grow, and your standing with the card company starts to weaken.
30 Days Late: The Credit Damage Begins
Once your payment is 30 days past due, your credit card issuer will usually report the missed payment to the three major credit bureaus: Experian, Equifax, and TransUnion. This can cause your credit score to drop.
Late payments stay on your credit report for seven years, even after you catch up. And the longer the delay, the worse the damage.
What else may happen at this point:
- You might lose access to any rewards or benefits on your account
- Your interest rate could increase (this is called a “penalty APR,” often 29% or higher)
- You’ll likely continue getting calls, emails, and letters from your credit card company
60–90 Days Late: Calls and Pressure Increase
At the 60-day mark, your account is considered seriously delinquent. You’re likely getting frequent collection calls, and your account may be suspended or frozen. You won’t be able to use the card for new purchases, and the fees and interest continue to build.
If you miss two consecutive payments, your card issuer can legally raise your interest rate permanently on future purchases, not just on the current balance.
At this point, some lenders may start offering payment plans or settlement options. You can also try to negotiate a hardship arrangement, which may reduce your interest rate or pause fees for a few months.
120+ Days Late: Charge-Off and Collections
Once your debt reaches 120 to 180 days past due, most credit card companies will “charge off” the account. That doesn’t mean the debt is forgiven—it just means the creditor has written it off as a loss in their records.
But here’s the part that matters: After the charge-off, your account is usually sent to a collections agency or sold to a third-party debt buyer. That’s when things get even more difficult.
What changes now:
- You may start receiving calls and letters from a collection agency instead of your credit card company
- Your credit report will show the charge-off and/or collection account
- The original lender is done dealing with you—the debt is now in the hands of someone else
- You might be offered a settlement amount (usually less than the full balance) to close the account
This stage can be incredibly stressful, but it also means the original lender is no longer in control, and that could give you more room to negotiate if you’re ready to deal with the debt.
After Collections: Can You Be Sued?
Yes, credit card debt is considered a “collectible” debt, and you can be sued in civil court if you ignore it long enough. This usually happens after months—or even years—of nonpayment. If the debt is large or the collector believes you’re able to pay, they might take legal action. If they win the case, they can ask the court to:
- Garnish your wages (take a portion of each paycheck)
- Place a lien on your property
- Freeze your bank account (in some states)
However, not all collectors sue, and many debts fall outside the statute of limitations, which varies by state but is typically 3 to 6 years. Once that period passes, they can still try to collect, but they can’t sue you for the debt.
Important: Don’t ignore a court summons. Even if you can’t pay, showing up may protect you from default judgments and give you a chance to explain your situation.
Can You Go to Jail for Credit Card Debt?
No. In the U.S., you cannot be jailed for unpaid credit card debt. It’s a civil matter, not a criminal one. That said, ignoring court orders (like skipping a required hearing) can lead to legal trouble, so it’s always better to respond and get advice than to avoid it altogether.
What If You Just Can’t Pay?
If your debt feels overwhelming, you’re not out of options. Here are a few steps you can take:
- Call your creditor: Explain your situation. Ask if they offer:
- Hardship programs
- Reduced interest rates
- Lower monthly payments
- A temporary pause on fees
- Work with a nonprofit credit counseling agency: These organizations can:
- Help you understand your full financial picture
- Create a debt management plan (DMP) to consolidate payments and reduce interest
- Talk to creditors on your behalf
- Negotiate with collectors: If your debt is already in collections, you can try to settle for less than you owe. This won’t erase the credit damage, but it may stop the calls and close the account. Always get any deal in writing before you pay.
- Explore bankruptcy only if truly necessary: Bankruptcy is a legal process that can wipe out credit card debt, but it’s a serious step that comes with long-term credit consequences. It may be worth exploring only if you have no other realistic way to recover. A legal aid attorney or credit counselor can help you understand your options.
How to Rebuild After Falling Behind
Even if your credit score takes a hit or your account goes to collections, recovery is possible. Start with small wins:
- Catch up on current bills—future lenders look for on-time payments now
- Open a secured credit card once you’re ready and use it responsibly
- Dispute any errors on your credit report to clean up your history
- Stick to a budget that prevents the debt from building again
Time, consistency, and even small payments can start to repair the damage.
Don’t Let Fear Keep You From Taking the First Step
It’s tempting to look the other way when credit card debt feels like too much, but silence doesn’t make it disappear. The sooner you face it, the more control you have over the outcome.
That doesn’t mean you have to pay everything all at once or know exactly what to do. Even small steps—making a call, checking your credit report, or talking to a counselor—can shift the momentum in your favor.
Debt happens. It just means life got tough—and now, you’re finding your way forward.
