What Happens If I Stop Paying My Credit Card?
If you stop paying your credit card, the account falls into arrears, late-payment interest and fees may be added, and the provider may hand the account to debt collectors or begin legal proceedings. Your credit profile is likely to be negatively affected. It is far better to contact the provider or seek a financial assessment before payments stop.
Key Points
- Stopping payments leads to arrears, fees and collections.
- Your credit profile is likely to be negatively affected.
- Legal proceedings may follow unresolved arrears.
- Seek help before payments stop, not after.
The sequence that follows missed payments
After missed payments, the provider typically issues reminders and then a formal default notice. If the arrears remain unpaid, the account may be handed to debt collectors and eventually to attorneys for legal recovery.
At each stage, additional costs and interest may be added, increasing the total amount owed.
Impact on your credit profile
Missed payments are reported to the credit bureaux and can lower your score. A judgment, if obtained, is a more serious record that remains on your profile for a longer period.
These records can affect your ability to access credit, housing and even certain employment for years.
What to do instead
If you cannot meet the payment, contact the provider to discuss options before you default. If the problem is across multiple accounts, consider a financial assessment to determine whether debt review is appropriate.
Acting early preserves options and can prevent the matter from escalating to legal proceedings.
Frequently Asked Questions
Worried That Your Debt Has Become Unaffordable?
Debt Guidance can assess your income, essential expenses and debt commitments to determine whether debt review may be appropriate.
Reviewed by Carolina Guevara Harris
Registered Debt Counsellor · NCRDC3152
Last updated: 17 September 2025
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