Maverick Trader Reveals 97% Accurate System

This man's simple strategy makes money in any market...With a 97% accuracy at hitting winners over the past 8 years!

Here's what you need to know about credit card defaults

ADRIANA MORGA
January 09, 2025

NEW YORK (AP) -- Credit card defaults are on the rise for Americans, reaching the highest level in 14 years. U.S. credit card defaults jumped to a record $46 billion from January through September 2024, according to the Financial Times, citing data analyzed by BankRegData.

With high levels of credit card debt and high inflation, many consumers have found themselves unable to cover monthly payments, leading some to default.

A borrower goes into default when they miss credit card payments for over 180 days, roughly six months. When there is a failure to pay over such a long period, banks generally take this as a sign that a borrower won't pay the debt anymore, said Matt Sotir, financial advisor with Equitable Advisors based in New Hampshire.

Defaulting on credit card debt can have serious consequences, including a negative impact on credit reports that lead to a long-lasting effect on the ability to borrow money, said Sotir.

"These are debts that have a lot of impact and I think sometimes people don't realize that if they missed (a payment), how bad it could be for them in other areas," added Sotir.

Here's what you should know about credit card defaults.

What does it mean to default on a credit card?

There are several levels of consequences when credit card payments are not made. It begins with late fees, higher interest rates and a potentially lower credit score. If a borrower doesn't pay for 30 days the bank considers the credit card "delinquent" and the borrower's credit scores can be damaged further.

When a borrower fails to make a payment for roughly six months, the bank considers the credit card in default, which means they will close your account and refer you to a collection agency, said Chip Lupo, writer at WalletHub.

"That's where you're going to really have trouble obtaining future credit for a while," said Lupo.

When a collection agency assumes your debt, they will reach out via phone, email and mail to encourage you to pay up. Eventually, if not paid, the collection agency may take legal action against the borrower.

What should I do if I default on a credit card?

The first step is to be proactive, recommended Sotir. Whether it's reaching out to your bank or working with a financial advisor, the quicker you start looking for viable solutions the more consequences you will be able to avoid.

"I've seen it over the years, when someone gets in trouble, it's easy to cocoon and not want to deal with it," said Sotir

Sotir and Bandebo recommend that you reach out to your credit card company to negotiate the debt since it's in the bank's best interest to help you catch up. If your account goes to a collections agency, find out if they can offer a payment plan or seek help from a non-profit credit counseling organization or financial advisor.

How can I avoid defaulting on my credit card?

It's best if you pay your credit card in full every month, but if that is not possible, gettting to at least the minimum monthly payment each month can help you avoid falling further into debt, said Rikard Bandebo, chief economist at VantageScore, a credit modeling company.

"Do whatever you can not to get to the next stage. If you're 30 days late, try to avoid getting to 60 days and absolutely try to do everything you can to avoid getting default," said Bandebo.

If you are having trouble making payments on your credit card, Bandebo recommends you reach out to your bank and ask if you can be placed in a payment plan.

Other alternatives include reaching out to a credit counseling organization or transferring your credit card debt to a 0% interest card, though that typically comes with a fee.

How does credit card default affect my credit score?

Defaulting on a credit card will mean serious consequences for your credit score, and that will limit how much you will be able to borrow in the future, and how much it will cost you. If you don't pay your credit card bill for a month, your credit score will likely fall between 60 and 100 points, said Bandebo. While there is not an specific amount of points that your credit score will fall should you default, it will appear on your credit report for seven years, added Bandebo.

Bandebo often uses the analogy of credit scores being similar to reputation; it takes a long time to build up but one mistake to set you back for a long time.

"There's not miracle solutions that once you've missed a payment, or you've gone to default, to simple go back to where you were. You can't just flip a switch," said Bandebo.

What if I can't pay?

If you find that you cannot regularly make payments to your credit cards, Sotir recommends you start by looking at your budget to find which expenses can be cut, and or considering whether you need an extra source of income.

"For most people, it's really about understanding how much money is coming in and where it's going," added Sotir.

If your expenses outweigh your income, Sotir recommends looking for a temporary second job, find if you have assets that you can sell, or asking family if they can help you while you get back on your feet. Additionally, some banks offer hardship programs that provide assistance for people who can't afford large and high-interest credit card balances.

Bankruptcy should be considered the last option if you have exhausted all other alternatives, added Lupo.

If your budget doesn't allow you to resume payments, it's important to start looking for alternatives as soon as possible, recommended Bandebo.

--

"The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism."

Continue Reading...

Popular

IRS whistleblower on Hunter Biden is out as acting commissioner just days after getting the job

WASHINGTON (AP) — Just days after to acting IRS commissioner, the whistleblower who testified publicly about investigations into Hunter Biden’s taxes is out of the job, according to three people familiar with the decision.

Rep. Marjorie Taylor Greene bought stocks hit hard by Trump tariffs during the market meltdown

NEW YORK (AP) — Give Marjorie Taylor Greene credit where it’s due: As stocks tanked on tariff fears, she showed her faith in the president not just with words but dollar bills.

No.1 Opportunity for 2025 [Take Action Now!] - Ad

Starlink's potential IPO Could Be the Biggest in History--Silicon Valley insider James Altucher has uncovered a way to profit BEFORE the IPO--with as little as $50. Musk's $180B giant is set to launch--will you miss out? Claim your spot before it's too late.

Visa cancellations sow panic for international students, with hundreds fearing deportation

WASHINGTON (AP) — At first, the bar association for immigration attorneys began receiving inquiries from a couple students a day. These were foreigners studying in the U.S., and they'd their legal status had been terminated with little notice. To their knowledge, none of the students had committed a deportable offense.

Canadian couple likely the only business owners on Australia's Norfolk Island to face US tariffs

MELBOURNE, Australia (AP) — Jesse Schiller and Rachel Evans are likely the only business owners on to be directly affected by the Trump administration's , as the South Pacific outpost they call home exports nothing to the United States.

Elon's Greatest Invention... Hidden in South Memphis? - Ad

Tech legend Jeff Brown recently traveled to the industrial zone of South Memphis to investigate what he believes will be Elon's greatest invention ever... Yes, even bigger than Tesla or SpaceX.

China accuses US of unilateralism, protectionism and economic bullying with tariffs

BANGKOK (AP) — China on Monday accused the U.S. of unilateralism, protectionism and economic bullying with tariffs, while calling on representatives of American companies including Tesla, to “take concrete actions” to resolve the tariffs.

New ETFs Offer Bitcoin Exposure With Built-In Safety Nets

New target outcome ETFs from First Trust provide a controlled way to invest in bitcoin with a cap and floor, offering potential upside and downside protection.

Trump to Unlock 15-Figure Fortune for America (May 3rd)? - Ad

This map looks ordinary--but according to insider Jim Rickards, it reveals a hidden government asset so massive . Trump may soon unlock it--learn how to position yourself before it's too late!

XRP, Solana, Cardano Plunge Over 15% In 7 Days: Is A Rebound Coming?

Major altcoins like XRP (CRYPTO: XRP), Solana (CRYPTO: SOL) and Cardano (CRYPTO: ADA) are down more than 15% in the past seven days, tracking

Crypto Attorney Sues US Government To Unmask Satoshi Nakamoto, Creator Of Bitcoin

In another interesting twist in the Satoshi Nakamoto saga, cryptocurrency lawyer James Murphy sued the U.S. government in an attempt to determine the identity of the pseudonymous Bitcoin (CRYPTO: BTC) creator.

New Study: 50 Stocks Will Crash While 7 MAGA Stocks Will Soar - Ad

If you own any of these stocks -- directly or through mutual funds -- I want to encourage you to sell them before April 30th. I've compiled all 50 companies in my "MAGA Blacklist" report. Your retirement could depend on seeing this list.

Trump advisers say 50-plus countries have reached out for tariff talks with White House

FORT LAUDERDALE, Fla. (AP) — Top administration officials said Sunday that more than targeted by President Donald Trump's have reached out to begin negotiations over the sweeping import taxes that have sent , raised fears of a recession and upended the .

Trump administration reverses long-held guidance on 'road diets' for traffic safety

A stylist was just starting her shift at a salon in Kansas City, Missouri, when a car smashed through the storefront window and landed in the waiting area a few feet away.

You Can Take a Stake in Elon's xAI Before May 1st... - Ad

Elon Musk's private AI firm xAI may have just leapfrogged ChatGPT and Google's Gemini--building what experts call the future of AI. For the first time, you can take a stake starting at $500.

Corporate plane skids off runway into water in Oregon, injuring 5 people

NORTH BEND, Ore. (AP) — A small corporate plane skidded off a runway and into the water in southern Oregon Monday, injuring five people, officials said.

Nvidia Is About to Shock the World: July 23rd - Ad

Jeff Brown, the tech legend who picked shares of Nvidia in 2016 before they jumped by more than 22,000%, is warning everyone to... Mark this date on your calendar: July 23rd! That's when Nvidia could help send shares of this Elon Musk supplier skyrocketing higher.

Japan reports a $63 billion trade surplus with the US as it talks with Trump on tariffs

TOKYO (AP) — Japan recorded a trade deficit in its March-April fiscal year but racked up a surplus with the U.S., the Finance Ministry reported Thursday.

Powell says Federal Reserve can wait on any interest rate moves

WASHINGTON (AP) — The Federal Reserve can stay patient and wait to see how tariffs and other economic policies of the Trump administration before making any changes to interest rates, Chair Jerome Powell said Wednesday.

The Most Important "AI Stock" You've Never Heard Of - Ad

The AI revolution is moving faster than anyone expected. But what no one is talking about is the one company AI simply can't exist without. It may be the single most important AI investment, yet most people don't even know its name. For now. The moment Wall Street catches on, this $20 stock could explode.

Informal ties with US philanthropists like Howard Buffett firm despite shaky US–Ukraine relations

BOBRYK, Ukraine (AP) — As uncertainty in U.S.–Ukraine relations grows, informal ties with some U.S. philanthropists built over three years of war with Russia are holding firm.

Decoding Jeff Bezos' Unique Amazon Interview Question: A Key To Hiring Success?

Jeff Bezos, during his time at Amazon, reportedly had an unconventional method of interviewing prospective employees, always posing them one unusual question: "Are you a lucky person?"

World Economic Forum: "Arguably the Most Exciting Human Discovery Since Fire" - Ad

Sam Altman, Bill Gates, and Mark Zuckerberg are all investing vast sums of money into a radical technology. According to Bloomberg, this could become 10 times bigger than AI, quantum computing, electric vehicles, cryptocurrencies, and robotics combined. And one stock is at the center of it all.

Company plans to restart Keystone Pipeline after oil spill in rural North Dakota

BISMARCK, N.D. (AP) — The operator of the said it planned to restart the system Monday after a last week shut down the line.

$74 Billion Wiped Out Since Tariff Declaration - See How Much The Billionaires Lost

In a significant market downturn since President Trump announced new tariffs worldwide, the world's wealthiest individuals have seen their fortunes shrink by $74 billion.

Musk: My New Robots Could Be Bigger Than Tesla - Ad

With DOGE, Elon Musk isn't afraid of controversy. He's introduced new, humanoid Optimus robots. They'll soon be building Teslas, but that's not all they'll do. Musk also mentioned these AI-brained robots could serve as "romantic companions" for lonely people. Is this the future of AI? No one should bet against Musk.

Ming-Chi Kuo Warns Semiconductor Stocks Face Near-Term Risks Under Trump Tariff Policy: Even Apple's $500 Billion US Investment Didn't Buy It Leniency

Ming-Chi Kuo warns that Trump's semiconductor tariffs pose significant risks for stocks, highlighting that even Apple's $500 billion U.S. investment didn't secure leniency from the aggressive policy.

PepsiCo agrees to meet with Al Sharpton over DEI cuts, potential boycott

Leaders at PepsiCo have agreed to meet this week with civil rights advocates from the National Action Network to discuss the company's recent decision to roll back some of its diversity, equity, and inclusion initiatives, the Reverend Al Sharpton said on Monday.

One Coin to Rule Them All... - Ad

Hardly any investors are talking about this coin but I believe that's about to change with some potentially huge news! Get in on the ground floor while it's rock bottom with this new how-to guide, just $3.

Anthony Scaramucci Says 26 Years Ago Warren Buffett's Amazon Caution Cost Him Millions: Former Trump Official Sees Today's AI Hype As History Repeating

Anthony Scaramucci shared how Warren Buffett's caution in 1999 led him to miss out on millions in Amazon stock, and how he believes the current skepticism surrounding AI mirrors that same missed opportunity.

A "Backdoor" Way to Claim a Stake in Elon's Optimus Before Its Launch - Ad

In 2017, Elon Musk went on record to say his Optimus could be "capable of doing anything". One Silicon Valley insider has identified a little-known "backdoor" way to invest in Optimus before its launch. This under-the-radar play could deliver astronomical returns - and you can get started with as little as $100.

Keystone oil pipeline shut down after a rupture in rural North Dakota

BISMARCK, N.D. (AP) — The Keystone oil pipeline was shut down Tuesday morning after it ruptured in North Dakota, with the spill confined to an agricultural field.

Elon Musk Drops Stunning Bombshell? - Ad

Behind closed doors, Musk revealed a game-changing breakthrough technology that could shake the tech world & crush major companies. Why is no one talking about it? Luckily, we had a man on the inside - watch now to see the details & how to profit!

Michigan Democratic Gov. Whitmer strays from her party in moving closer to Trump

LANSING, Mich. (AP) — Michigan Gov. Gretchen Whitmer delivered a speech emphasizing points of agreement with President on economic policy, just hours before their scheduled meeting — a reflection of the high-profile Democrat’s more toward the president as her party ramps up its attacks on him.

Maverick Trader Reveals 97% Accurate System - Ad

This man's simple strategy makes money in any market...With a 97% accuracy at hitting winners over the past 8 years!

Smart Driving Equality: A Battle For Control Of An Emerging Industry

As smart driving features trickle down to budget cars, upstream suppliers are downgraded from solution providers to low-margin parts vendors.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright activatrade.ca
Privacy Policy | Terms of Service