I had a credit card and stopped paying, what happens?

I had a credit card through Best Buy and missed payments and HSBC started calling everyday (which is normal). But I go so far behind that I couldn't make the payments any more. Then suddenly, the...

I had a credit card through Best Buy and missed payments and HSBC started calling everyday (which is normal). But I go so far behind that I couldn't make the payments any more. Then suddenly, they stopped calling. One day, I got a phone call from some credit place saying that HSBC sold my account to them and want to collect the money from me. I only owe about $2,000, but when they called, they wanted the full amount or to start a payment plan, by starting with $600 down. Obviously, I couldn't do that. What does this mean? What can happen if I don't pay it and who are these people?

Erin	That is what happens. Your account has been charged off, which means your credit is going to be in the dumps for a bit. Offer them a settlement of 30%, ($600). Offer to do that in payments. It will stop the calls and on your credit report it will read as settled for less than 100% of full balance. It's not the greatest way to improve your credit, but if you don't have the amount that they are looking for I think it's the best way. If you don't pay them they will countinue to call and call. Then they will sell your account this can go on for 5 years plus, the buying and selling of the charged off accnt. Eventually if a company really wants the money. They can serve you will a summons to go to court. You can answer the summons in writing by setting up a payment arrangement. If you fail to do that or go to court there will be a judgement on your accnt. Meaning they have the right to freeze your bank accnts, put a lien on any property you own, and or garnish your wages up to 10% depending what state you live in. They will also take your tax refund each year until the debt is paid in full. They won't necessarily do all of those thing but, depending what state you live in they may have the right to. Your best bet is to go for a settlement and make payments on it. Don't let those debt collectors get to you either. Remember they make minimum wage and usually get commision on what ever they collect. Tell them why you are behind or give them a good story. Usually if you are willing to work with them they'll work with you as well. Good luck.

vaghinijj	they bought your discharged credit. they will hassle you for the next 7 years, don't take their calls, don't acknowledge the debt, DO NOT send them any money as that means you have accepted the debt. tell them you will settle with them fo 250 bucks, if they say no, just don't pick up the phone anymore. They are professional scumbags who prey on peoples better emotions. they prolly paid HSBC like 25 dollars for your full debt. which i'm guessing started at about 750 bucks and blew up from late charges and such to 2000. and may i add that unless you are gunna buy a house in the next seven years don't sweat it, and stay the heck away from credit cards

msverychocolate	THEY CALL, AND CALL AND CALL, JUST PAY WHAT YOU CAN!!

amandanecole08	they start with the phone calls then they mail u a high price *** bill in the mail then they continue to keep callin and u never pick up then they leave a whole lot of messages

rhattie	Late fees to start then interest. If they really want to persue it then you'll end up in court.

Amber	It is probably in collections already, so really all they do is call you over and over again and send you bills over and over again, and in about....7 years...it will drop off your credit report.

dontcachfire	they call and call and call and call. and then they come after your house.

amy-j	well you owe money so they 1st will try to bill you then they will sell you (your debt ) to a collection ageny which usually lowers the bill and offers a plan... until you begin to pay your bill will just be passed around and your ruining your credit and after awhile they can try to sue you. my advice pay something anything even if its five dollars a month. i once heard that so many people are in debt that at the end of the year as long as a bill has been paid on (no matter amount ) sometimes they get dropped. :)

topguntony	Your credit is going down.

lav B	What going to happen is your credit going to get jakeup, If you don't want to have bad credit you need to pay it or ask to make payment arrange.

KL08	The people who called are collections most likely! This is NOT good! For even ONE late payment your credit score goes down BIG time! If you keep this up it will get even more serious! Go to a credit counselor immediately! They can negotiate your interest rate and help set up a payment plan. A lot of the time, you have to pay them a fee, but if you make all your payments on time from then on, they pay everything back to you! Just look up credit counselors in your area!

Marymiss	the most obvious result is going to be on your credit history, which will be seriously damaged. These people are the new owners of your loan, they will do anything to get their money. Depending on how your credit is now, and how important it is to you, you can try to work something out with them. But if you don't, for sure your credit will be really messed up.

Your Y!A BFF	Late fees, and your credit will be ruined---you'll have trouble getting any loan or future credit cards. the people are just debt collectors. they might try to repo your car as collateral

YEDOoo	those people are the collection agency, wen money is not recieved the business will look towards them , they will get the money from you by any means including taking of certain property such as other creditcards, ur car or any other assets..take care of this as soon as possible, do not ignore, ur credit is way too valuable

noncomputerwiz	I have 3 credit cards, That I applied for when I was 17 and got them in the mail and started using them. With no way of paying them off. (I was stupid at the time, I know.) My credit is ruined now. I still owe them the money. 2,000 dollars to be exact. Just like you. It's been 3 and a half years now and the only amount that I have sent them on the bill was 100 dollars total. I haven't been sued.(Yet). I am gonna pay a little at a time when I can. I know it won't fix my credit. but at least it will be payed for. You know I thought I was rich with all that money.(2,000 dollars) I can't believe they even approved me at 17 and without any job.

hot mommy	They have options. They can garnish your wages, write it off as an uncollected debt, if they do this they should send you a 1099 for at tax time and you will have to report all this money as income on your taxes or they can continue to call and try to get you to pay the bill. all though a garnishment is most likely to happen. In some states you can send a payement and if refused, your debt is considered paid in full. Just make any payment will help, I know they want a large amount but if you payed them $50 it will help.

EVANS HERE YAY!!! WHAT A BIG GUY	They sent you to a collections agency. They bought your account from HSBC cause you were not paying them. The collection agency will work with you to clear this debt before they put it on your credit report. Try to work something out with them if you dont tehy will put it against your credit so when you want to move buy a house or car it will show that you are not liable for payments. and are a risk. Also if you dont pay they can sometimes take you to court and sue to ganish your wages to make sure you do pay. I owe a medical bill that I am not paying cause of malpractice (i cant afford a lawyer to sue so I wont pay) The collection department still call ever week and its been a year going on two. they threaten to garnish my wages but when i bring up the fact that they gave me lorrie tabs instead of finding out what was wrong and I had a possible misscarrige they shut up and leave me alone for a month. Its better to pay and be done then to fight.

turnxx5	You are likely beyond late fees. It sounds like a collection agency has taken your account on a "bounty" in that they get paid a part of what you pay and anything over a certain amount.

Anne C	You have entered collections hell. If you can pay anything, send what you can. If you can't, you may be headed for bankruptcy which will damage your credit for the next decade. Cut up all your cards and look for some consolidation help like from Consumer Credit Counseling.

complicatedtallblonde	They are pry a collection agency. You need to talk to them and get something straightened out. Even if you can only send in 100 dollars or 50 dollars its better than nothing. Or if you are behind on your house and many other things maybe bankrupsy or settling with a lawyer would be best.

♥jayme Dear...	when it gets sent to collections you can prob settle it in full for about 500 bucks. I used to work for an agency.. nothing happens but your credit score will drop if you just never mess with it again.

Julie H	If you don't pay, they will sue you. You will also have a ruined credit rating, so your car insurance will be higher. Also, you will likely be denied credit to buy anything in the future since you don't feel like paying for your debts.

James	pay it or they wil sue you