What Happens If You Stop Paying Your Credit Card?

Introduction

Credit cards can be convenient for everyday purchases, but missing payments can quickly snowball into serious problems. When you stop paying your credit card bill, you risk late fees, penalty interest rates, collection calls and long‑term damage to your credit. This article explains what happens at each stage and how to get back on track. For tips on managing debt on a limited income, see [How to Get Out of Debt on a Low Income](cleanslatehub.ca ↗).

Immediate Consequences of Missed Payments

If you miss a payment, your card issuer may charge a late fee and raise your interest rate to a penalty rate. Your minimum payment will also rise, making it harder to catch up. Once your payment is 30 days late, your card issuer will report the delinquency to the credit bureaus, which stays on your credit report for up to six years. After 60 days, your interest rate may increase again, and your account may be closed.

Impact on Your Credit Score

Payment history is the single biggest factor in your credit score. A 30‑day missed payment can cause your score to drop significantly, and the effect worsens with each subsequent missed payment. Even after you bring the account current, the late payment notation can remain on your report for years. For more on how long items remain on your report, read [How Long Does Information Stay on Your Credit Report?](cleanslatehub.ca ↗).

Collection Calls and Your Rights

After several months of non‑payment, your creditor may send your account to collections. Third‑party collectors may start calling and sending letters. It's important to know your rights. Federally regulated lenders and collection agents cannot disclose details about your debt to friends, neighbours or most family members canada.ca ↗ They’re also limited in how often and when they may call you, and they cannot contact your employer except to confirm your employment canada.ca ↗ If a collector violates these rules, you can file a complaint with your provincial regulator or the Financial Consumer Agency of Canada.

How to Get Back on Track

As soon as you know you can’t make a payment, contact your card issuer. Explain your situation and ask if they will waive fees or temporarily lower your interest rate. Many lenders have hardship programmes. You can also seek help from a non‑profit credit counselling agency. They can help you create a budget, negotiate with creditors and set up a debt management plan. If your debt is overwhelming, consider debt consolidation, a consumer proposal or speaking with a Licensed Insolvency Trustee. For more guidance, see [Debt Consolidation vs. Debt Settlement](cleanslatehub.ca ↗) and [Debt Relief Options in British Columbia](cleanslatehub.ca ↗).

Conclusion

Missing credit card payments can quickly lead to escalating costs and stress, but you have options. Act quickly, understand your rights and seek help early. By taking proactive steps, you can stop the cycle of debt and rebuild your financial health.