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What Happens When You Don't Pay Your Credit Card Bill?

Are you considering putting off your credit card payment to make ends meet? That decision could have serious consequences for your financial stability. Here’s what happens when you don't pay your credit card bill and how credit counselling can help you manage your debt.


a close up of a keyboard, a black pen, and the corner of a credit card


  1. You’ll be charged a late fee. The first consequence of missing a payment is that the credit card company will charge you late fees and penalties ranging from $25 to $40 or more. These fees can quickly add up and make paying off your debt even more difficult.

  2. Your interest rate will go up. If you continue to miss payments, your credit card issuer may increase your interest rate. This rate can be significantly higher than your regular interest rate and quickly lead to a substantial increase in your overall credit card debt.

  3. Your credit score will take a hit. Missing credit card payments can hurt your credit score. Payment history is one of the primary factors that credit bureaus consider when calculating your credit score. A missed payment can lower your credit rating, making it more challenging to obtain loans, mortgages or favourable interest rates in the future.

  4. A collection agency will hound you. Repeatedly failing to make credit card payments can cause your account to be handed over to a debt collection agency. Collection agencies are known for their aggressive tactics. If they’re assigned to collect your credit card debt, they may harass you by phone, mail or even in person.

  5. You might get sued. In extreme cases, the credit card issuer may take legal action against you. If the court rules in favour of the credit card company, the company may be granted the ability to garnish your wages or seize your assets to pay the debt. You may also need to pay court costs and legal fees.

The Role of Credit Counselling

If you’re struggling with credit card debt, seeking credit counselling with the help of a licensed insolvency trustee (LIT) can help. A LIT is trained to provide guidance and expertise to help you manage debt, create a budget and improve your financial situation. They can also help you file a consumer proposal or personal bankruptcy to help reduce or eliminate your debt.


Schedule Credit Counselling in Ontario with D. & A. MacLeod Company

At D. & A. MacLeod Company Ltd., our experienced licensed insolvency trustees offer credit counselling, consumer proposal and personal bankruptcy services to families and businesses in Ottawa. Visit us at one of our eastern Ontario locations or schedule a virtual appointment from anywhere in Canada. We have offices in Brockville, Cornwall, Kanata, Kingston, Ottawa, Pembroke and Smiths Falls.


Contact us today to book a free, confidential session and let us help you find a new beginning™.

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