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What happens if you can’t pay your credit card debt?
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Credit card usage has become increasingly common over the last couple of decades, in large part because of the convenience and flexibility it offers. According to the Federal Reserve Bank of New York, credit card balances are now at a collective $1.14 trillion nationwide. That’s an increase of $27 billion during the second quarter of 2024 alone — and an uptick of 5.8% compared to one year ago.
But while credit card usage is common, it can also be dangerous to your finances. After all, a number of recent economic hurdles — like rising consumer goods costs caused by inflation — have left many people’s budgets stretched thin. In turn, many people are relying on their credit cards to cover the gaps. That’s happening at a time when the average card rate is hovering near 23% and as the hefty interest charges compound, it can be tough to get ahead.
In some cases, your ballooning credit card balances can make it tough to meet even the minimum payment obligations. That can be a daunting prospect — especially considering that there are often hefty repercussions for falling behind.
Need extra help with your credit card debt? Explore your debt relief options here now.
What happens if you can’t pay your credit card debt?
If you’re unable to make your credit card payments, it could result in a range of consequences, including:
Late fees and penalties
Most credit card issuers charge fees for late payments, which typically range from $25 to $40, when you miss a payment (or make a payment after the grace period). These fees are added to your balance, increasing your total credit card debt.
Learn more about the credit card debt relief options available to you now.
Interest rate hikes
Many credit card agreements include a clause that allows the issuer to raise your interest rate if you are 60 days late on a payment. This penalty annual percentage rate (APR) is generally significantly higher than your regular rate and may be as high as 29.99%.
A penalty APR typically lasts for six months, and you have to make six on-time payments to get rid of it. That means the penalty APR can last even longer if you continue to make late payments on the account — making it even more challenging to pay off your debt.
Negative credit score impact
Payment history is one of the most significant factors in determining your credit score. Any late or missed payments on your card accounts are reported to credit bureaus and can remain on your credit report for up to seven years, lowering your score and making it harder to obtain future credit or even obtain certain types of employment that require credit checks.
Collection calls and letters
If you fall behind on payments, your creditor may start contacting you through phone calls and letters to collect the debt. These communications can become increasingly frequent over time.
Account charged off
After 180 days of non-payment, credit card issuers will typically charge off the account, considering it a loss. This doesn’t mean you’re off the hook, though. The debt is typically sold to a debt collection agency that continues to try and collect what you owe.
Legal action
In some cases, creditors or collection agencies may sue you to recover payment on the debt. If they win a judgment, they may be able to garnish your wages or place liens on your property.
Which debt relief options can help?
If you’re struggling to keep up with your credit card debt, the following debt relief options could help:
- Debt consolidation: Consolidating your debt involves taking out a new loan to pay off multiple credit card debts. The goal is to secure a lower interest rate and simplify your payments.
- Debt management plans: Credit counseling agencies can help you create a debt management plan. They also negotiate with creditors on your behalf to potentially lower interest rates and waive fees.
- Debt forgiveness or debt settlement: Pursuing debt forgiveness involves negotiating with creditors to accept less than the full amount owed. This option may be able to reduce your total balance by 30% to 50%, providing significant relief.
- Credit card hardship programs: Many credit card issuers offer hardship programs for those experiencing temporary financial difficulties. These programs may result in reduced interest rates, waived fees or modified payment plans.
- Bankruptcy: Filing for bankruptcy can provide a fresh start, but it’s typically a last resort option. Chapter 7 bankruptcy can eliminate most unsecured debts, while Chapter 13 allows you to reorganize your debts into a manageable repayment plan.
The bottom line
It’s a lot easier than you may expect to find yourself in serious credit card debt — and as the interest and fees compound, it could get tough to keep up with your payments. That can be a big issue for your finances, but the good news is that you have options to consider. But whatever choice you make, just be sure that you’re addressing your credit card debt as quickly as possible. That way, you can minimize the negative consequences and start regaining financial stability.
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How to watch the Minnesota Vikings vs. Chicago Bears NFL game today: Livestream options, more
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The Minnesota Vikings will take on the Chicago Bears today. The Vikings are currently 8-2, an impressive run so far this season, and will be looking to add a fourth win to their current streak after last Sunday’s 23-13 win against the Tennessee Titans. The Bears, on the other hand, are entering this game on the heels of a four-game losing streak after a tough 20-19 loss against the Green Bay Packers last Sunday.
Here’s how and when you can watch the Vikings vs. Bears game today, whether or not you have cable.
How and when to watch the Minnesota Vikings vs. Chicago Bears
The Vikings vs. Bears game will be played on Sunday, November 24, 2024 at 1:00 p.m. ET (11:00 a.m. PT). The game will air on Fox and stream on Fubo and the platforms featured below.
How and when to watch the Minnesota Vikings vs. Chicago Bears game without cable
You can watch this week’s NFL game on Fox via several streaming services. All you need is an internet connection and one of the top options outlined below.
Fubo offers you an easy, user-friendly way to watch NFL games on CBS, Fox, NBC, ABC, ESPN, and NFL Network, plus NCAA football channels. The Pro tier includes 200+ channels and unlimited DVR, while the Elite with Sports Plus tier adds NFL RedZone and 4K resolution. New subscribers get a seven-day free trial and all plans allow streaming on up to 10 screens simultaneously.
You can watch today’s game with a subscription to Sling’s Orange + Blue tier, which includes ESPN, ABC, NBC, and Fox. The plan offers 46 channels with local NFL games, nationally broadcast games and 50 hours of DVR storage. For complete NFL coverage, add Paramount+ to get CBS games, or upgrade with the Sports Extra add-on for additional sports channels like Golf Channel, NBA TV and NFL RedZone.
Watching NFL games, including Fox broadcasts, is simple with Hulu + Live TV, which includes 90 channels, unlimited DVR storage, and access to NFL preseason games, live regular season games and studio shows. The service includes ESPN+ and Disney+ in the subscription.
Want to watch today’s game live on your smartphone? If so, NFL+ streaming service is the solution you’re looking for. It lets you watch NFL Network and out-of-market games on mobile devices, with an upgrade option to NFL+ Premium that includes NFL RedZone for watching up to eight games simultaneously. Note that NFL+ only works on phones and tablets, not TVs.
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How to watch the Detroit Lions vs. Indianapolis Colts NFL game today: Livestream options, more
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The Detroit Lions will face off against the Indianapolis Colts today. The Lions enter this game as top contenders with a near-perfect record of 9-1 so far this season. The Colts, who are 5-6 this season, could have a tough game on their hands against the Lions but will be looking to rack up another win after prevailing over the New York Jets in a tight game last Sunday.
Here’s how and when you can watch the Colts vs. Lions game today, whether or not you have cable.
Here’s how and when to watch the Detroit Lions vs. Indianapolis Colts
The Lions vs. Colts game will be played on Sunday, November 24, 2024 at 1:00 p.m. ET (11:00 a.m. PT). The game will air on Fox and stream on Fubo and the platforms featured below.
How and when to watch the Detroit Lions vs. Indianapolis Colts game without cable
You can watch this week’s NFL game on Fox via several streaming services. All you need is an internet connection and one of the top options outlined below.
Experience NFL action like never before with Fubo’s comprehensive sports streaming platform. From Sunday showdowns to primetime matchups, catch every NFL game across major networks including CBS, Fox, NBC, ABC, ESPN and NFL Network. Choose the Pro package to unlock 200+ channels and limitless DVR storage, or elevate your game-day experience with the Elite with Sports Plus package, featuring NFL RedZone’s commercial-free scoring highlights and stunning 4K quality.
Test drive the service with a no-commitment seven-day free trial, and share the excitement with family and friends — Fubo supports simultaneous streaming on up to 10 devices, so everyone can watch their favorite teams.
You can watch today’s game with a subscription to Sling’s Orange + Blue tier, which includes ESPN, ABC, NBC, and Fox. The plan offers 46 channels with local NFL games, nationally broadcast games, and 50 hours of DVR storage. For complete NFL coverage, add Paramount+ to get CBS games, or upgrade with the Sports Extra add-on for additional sports channels like Golf Channel, NBA TV and NFL RedZone.
Watching NFL games, including Fox broadcasts, is simple with Hulu + Live TV, which includes 90 channels, unlimited DVR storage, and access to NFL preseason games, live regular season games and studio shows. The service includes ESPN+ and Disney+ in the subscription.
Want to watch today’s game live on your smartphone? If so, NFL+ streaming service is the solution you’re looking for. It lets you watch NFL Network and out-of-market games on mobile devices, with an upgrade option to NFL+ Premium that includes NFL RedZone for watching up to eight games simultaneously. Note that NFL+ only works on phones and tablets, not TVs.