Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Personal Finance Debt Relief What Happens If I Can’t Pay My Credit Card? Updated Jun 27, 2025 13-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Catherine Collins Written by Catherine Collins Expertise: Budgeting, Mortgages, Credit, Debt, Personal loans, Small business, Entrepreneurship Learn more about Catherine Collins Reviewed by Michael Menninger, CFP® Reviewed by Michael Menninger, CFP® Expertise: Comprehensive financial planning, tax planning, investment planning, retirement planning, estate planning Michael Menninger, CFP®, and the founder and president of Menninger & Associates Financial Planning. He provides his clients with financial products and services, always with his client's individual needs foremost in his mind. Learn more about Michael Menninger, CFP® If you can’t pay your credit card bill, you’re not alone. Many people fall behind on credit card payments for various reasons, including unexpected expenses, health issues, or job loss. We’ve uncovered the proactive steps you can take to get the support you need. Keep reading: We’ll explain what happens if you can’t pay your credit cards and what to do if you’re in this situation. We’ll also share some resources and other options that can help you get current (and possibly help you eliminate credit card debt for good). Table of Contents What happens if I can’t pay my credit card? 1 day late 30 days 60 – 180 days 180+ days 5 years 10 years What do I do if I can’t pay my credit card? 1. Stop using your cards 2. Call your credit card company 3. Bring your accounts current 4. Track and budget 5. Offer to settle 6. Get outside support Nonprofit credit counseling agency Debt management plan Debt relief company How to prevent being late on a credit card FAQ What if you can’t pay your credit card for several months? What happens if you never pay your credit card? What if you can’t make your minimum payment? Can you go to jail for credit card debt? Will the government help with credit card debt? What happens if I can’t pay my credit card? If you can’t pay your credit card bill on time, the Consumer Financial Protection Bureau (CFPB) recommends that you take action right away. Although not being able to pay your credit card might feel embarrassing, the truth is that this is a common occurrence, especially during times of high inflation and economic instability. Credit card companies typically have resources in place to help customers who are experiencing financial difficulties. Here is what happens if you’re late at different time frames, which shows why it’s important to act fast. 1 day late If you’re one day late on your credit card payment, you’ll likely get a late fee from your credit card company. However, if you’re one day late paying your bill, you will not be reported to the credit bureaus. At this point, try to make at least the minimum loan payment as soon as possible. If it’s your first time being late on a credit card payment, you can often call or chat with your credit card company and ask it to waive the late fee. Many will, if it’s the first time. 30 days late If you’re 30 days late on your credit card payment, your account is delinquent. At this point, the credit card company will report your late payment to the credit bureaus. This will damage your payment history, which makes up 35% of your FICO credit score. Your credit score will drop, and the late payment will be on your credit report for seven years. What happens if I don’t pay my credit card for a month?You technically have up to 30 days to make at least the minimum payment on your credit cards, but once you hit the 30-day mark, you’ll have a late payment on your credit report for up to seven years. 60 – 180 days late If your credit card payment is between 60 and 180 days late, you’re now considered seriously delinquent on your payment. By this point, creditors will call you and send letters in the mail notifying you of your delinquent status. Your credit card company might also institute a penalty APR, if it hasn’t already, which means it will raise your interest rate even higher as a punishment for being late. If a client came to me with overdue credit card debt, I’d first ask how they got into debt—was it unexpected expenses, job loss, or spending issues? If the root cause isn’t addressed, they’ll likely end up in debt again. Assuming that’s resolved, I’d review their assets to see if anything can pay down or eliminate the balances. If not, I’d consider alternatives like a home equity loan with a lower interest rate and longer term to improve their cash flow and make repayment manageable. Michael Menninger , CFP® 180+ days late After your credit card payment is 180 days late, your credit card company can charge off the account. That means the credit card company will likely sell off your debt to a collections agency. The collections agency will begin calling you asking for a payment, and your credit card company will likely close your account. What happens if I don’t pay my credit card for 5 years? If you don’t pay your credit card for five years, credit card and collection companies will likely call you regularly to ask about your debt payments. You might be sued. Your debt will still appear on your credit report, and it will remain there for up to seven years. What happens if I don’t pay my credit card for 10 years? By law, through the Fair Credit Reporting Act, your credit card debt will no longer be on your credit report after 10 years. However, if your lender sues you in court, you may still be required to make payments or have a lien against you. Lawsuits and liens If you don’t settle your debt with your credit card company or the collections agency, the lender can sue you for nonpayment to try to recoup some of the money. If these companies win a lawsuit against you, it can result in wage garnishment and liens against your assets, like your house. Fair Debt Collection Practices Act Although your creditors are calling you and writing you about money you legally owe, you still have rights as a consumer thanks to the Fair Debt Collection Practices Act. This act makes it illegal for creditors to threaten or harass you for nonpayment. These companies aren’t allowed to call you at inconvenient hours or use harsh language. What do I do if I can’t pay my credit card? If you can’t pay your credit card, here are the steps to take. Steps 1 through 5 are options you can complete on your own without outside assistance to bring your credit card debt up to date. 1. Stop using your cards If possible, stop using your credit cards. Making purchases at this time, especially if you can’t pay your bill, can increase your balance and make it harder to pay off in the future. 2. Call your credit card company Although it can feel embarrassing, calling your credit card company is the best next step to take. Many companies have options that can help, like waiving a late fee, offering temporary reduced interest, or enrolling you in a hardship program. The earlier you communicate with your credit card company, the better. 3. Bring your accounts current If possible, try to bring your accounts up to date by paying at least the minimum payment. This may require selling items in your home or taking on extra work. However, making the minimum payment would eliminate creditors calling, which likely adds to your financial stress. 4. Track and budget Creating a budget isn’t as restrictive as it seems. It involves reviewing your spending, tracking where your money goes, and identifying areas for improvement. Creating a budget provides a comprehensive view of where your money goes, allowing you to make informed choices about what you can change in the future. 5. Offer to settle If your credit card company sent you to collections, you can also offer to settle the debt yourself. Tell the collections agent how much you can pay on the debt, and see whether it will accept a lower amount than you owe. 6. Get outside support If the options above don’t work for you and you need outside support, you have options. Here are several to consider: Nonprofit credit counseling agency Nonprofit credit counseling agencies, such as the National Foundation for Credit Counseling, offer debt counseling to help you create a repayment plan. Counselors can negotiate with lenders on your behalf and help you find a path forward. If a client is drowning in high-interest debt they can’t repay in a reasonable time frame, I’d recommend a nonprofit counseling service first. They can negotiate reduced rates and set up a single payment plan, often lowering monthly costs.One client paid off all debt in three years on a four-year plan. Bankruptcy is always a last resort. Before recommending it, I’d assess whether their income situation is unsustainable; major lifestyle changes would likely be needed alongside bankruptcy. Michael Menninger , CFP® Debt management plan Nonprofit credit counseling agencies create debt management plans (DMPs), which consolidate your debt into one monthly payment. To get a debt management plan, you must close all your credit card accounts and agree not to open new ones. These plans typically last between three and five years. Debt relief company If you don’t think you can repay your debt on a DMP, it can make sense to consider for-profit debt relief. A reputable debt relief company (National Debt Relief is our team’s choice for the best overall) will negotiate with your creditors on your behalf. You’ll send payments, which are kept in escrow accounts and used to offer settlements (for less than you owe) to your creditors. Results aren’t guaranteed, but you won’t pay fees unless the company successfully settles your debt. If you’re considering this route, be aware that not paying your credit cards, which is required to settle with creditors, can wreck your credit score. Pros and Cons of Debt Relief Programs Bankruptcy A last resort if you can’t make your credit card payments is to file for bankruptcy. To see whether you’re eligible to file for bankruptcy and whether it would be a good option, contact a bankruptcy attorney to review your options. Some types of debt can’t be discharged in bankruptcy, such as federal student loans. Bankruptcy is a last resort because it can be challenging to finance large purchases in the future, such as a car or a house. Bankruptcies can stay on your credit report for up to 10 years, so even though your debt is gone, the impacts can last for years. How to prevent being late on a credit card Having an emergency fund can help you pay for unexpected expenses, like buying a new dishwasher or a last-minute flight to visit a sick relative. When you have money on hand, even if it’s a small amount, it reduces the likelihood that you pay for it with credit. You can create a starter emergency fund by creating a budget and tracking your expenses. Plus, a recent Vanguard study found that having at least $2,000 in an emergency fund can improve your well-being by up to 21%. According to the study, having an emergency fund also reduces the amount of time you spend thinking about your finances. What not to do if you’re late on your credit card If you’re late on your credit card payment, try not to panic. You have more options than you think. Feeling stressed can prevent you from taking the next step, which is to call your credit card company and ask whether it can help you get current. Your credit card company may waive late fees if it’s the first time, or tell you about its hardship programs. Either way, don’t ignore the problem; that could make it worse. It’s unlikely the person you speak with will be rude or judgmental. Credit card companies often handle late payments, which is why programs exist to help people in this situation. FAQ What if you can’t pay your credit card for several months? If you can’t make payments for several months, your account may be considered seriously delinquent. Your credit card issuer may apply a penalty APR, close your account, and send your debt to a collections agency. This can tank your credit score and increase stress from collection calls. It’s important to communicate with your credit card company early to explore hardship programs or alternative repayment options. You may also want to speak with a nonprofit credit counselor to understand whether a debt management plan is right for you. What happens if you never pay your credit card? If you never pay your credit card debt, your creditor will likely charge off the account after 180 days and sell it to a collections agency. The debt will continue to affect your credit report for up to seven years and can lead to legal action, including wage garnishment or liens, depending on your state laws. While the debt may eventually fall off your credit report, it won’t disappear entirely—especially if legal action is taken. Ignoring the debt can make your financial situation worse over time. What options are available if you can’t make your minimum payment? If you can’t make the minimum payment, contact your credit card company immediately. Many issuers offer hardship programs that can temporarily reduce or pause your interest rate or payments. You might also consider working with a nonprofit credit counseling agency to create a manageable repayment plan. If your financial hardship is long-term, a debt management plan or reputable debt settlement program may help, though each comes with trade-offs. The key is to act early and avoid ignoring the issue. Can you go to jail for credit card debt? No, you can’t go to jail for credit card debt in the United States. Credit card debt is a civil matter, not a criminal one. However, if a creditor sues you and wins a judgment, the court may order wage garnishment or other legal remedies to recover the debt. Ignoring a court summons could lead to legal consequences, but the debt itself won’t result in jail time. If you’re being threatened with jail over unpaid debt, that may be a violation of the Fair Debt Collection Practices Act. Will the government help with credit card debt? The federal government doesn’t offer direct assistance for credit card debt like it does for student loans. However, during major economic crises (such as the COVID-19 pandemic), temporary relief measures may be available. Some states offer emergency financial assistance or nonprofit support for struggling individuals. While no official government program erases credit card debt, nonprofit credit counseling agencies often receive grants to help people in financial distress. These organizations can guide you through repayment options and budgeting strategies.