Here's What Happens If You Don't Pay Your Credit Card Debt
Every time a credit card bill comes, do you ever think about what happens if you can't pay the bills listed in the letter? The consequences to be faced when not paying credit cards is not a joke.
So, what would happen when not paying credit card bills?
1. You Must Pay High Interest.
Credit cards turned out to be one type of debt with a fairly high interest you know, with an average interest of 2% -2.5% per month. Interest is not only charged when you are not paying a credit card, but also when paying less than the total amount or paying only a small amount of payment, and when making full payment but after the due date.
The calculation of this interest is not charged in accordance with the remaining bill in the following month. However, it is calculated proportionately to each transaction since the transaction is posted. The day difference between the date of bookkeeping and the bill date will also be charged daily interest. So, have you imagine how high the interest will be if not paid on time?
2. Pay Fines.
Not just pay interest, you also have to pay a fine that is the cost of delay. In 2012, Bank Indonesia has determined that the late payment penalty is 3% of the total invoice for the month, with a maximum fine amounting to Rp150,000 per month. What if it turns out in the next month you haven't pay credit cards? Well, the amount of fines will be increasingly mounting.
3. Credit Card Score will Decrease.
Every customer who uses a credit card has a credit score or quality. The score or credit quality is the "value" that determines whether you are eligible or not getting a loan. In addition, also determine the amount of loans that can be obtained.
Those who pay credit card bills with discipline and on time will have a score or quality of credit smoothly. Those who do not pay credit card bills? Most likely the score or quality of credit will decrease or even stalled. As a result, you have a hard time applying for another "big" loan to the bank. For example, loans buy a house, car, or even open a business.
4. You will be "terrorized" by the Bank.
Do not be surprised if the phone will ring every day when you haven't pay your credit card bills. And, it's predictable that the one who called you is not a coveted man, but a bank! Yes, banks will not be tired of calling customers who are delinquent credit card payments even though it is only a few weeks late from the deadline.
If credit card debt has reached the stage of credit debt, chances are you will be visited by debt collectors or debt collectors. Keep in mind that the debt collector is not a thug. He may only collect the debt in accordance with the ethics set by Bank Indonesia (BI). Not only that, debt collectors are also not allowed to threaten, violate, or treat customers who owe. Similarly, seize goods owned by customers.
5. You are Blacklisted from the bank.
The biggest consequence when not paying a credit card is you will be blacklisted or blacklist BI. BI has a track record of payments that you made within the last 24 months. Its function is to know whether your payment is current or not. This note is called the Historical Individual Debtor Information or commonly called IDI Historis.
Any credit application to a bank, whether it is a credit card, a Loan Without Collateral (KTA), a Home Ownership Loan (KPR), to a Motor Vehicle Loan (KKB), implies checking IDI Historis or BI Checking to help the bank determine whether the customer is eligible for a loan or no.
Well, if the name is listed in the BI blacklist, you will have difficulty applying for credit or get an increase in credit card limit. The name will continue on the black list if you can not pay off the debts that accumulate because they do not pay credit cards.
6. Then, could you go to jail when not paying credit cards?
In fact, until now there is no criminal law that regulates credit card problems. Basically, this issue has a bond similar to the agreement, ie the agreement between you as a debtor and a bank as a creditor.
If indeed this problem wants to be processed by law, then the law used is civil law. So, if you're wondering that you might go to jail or not for not paying a credit card, the answer is no. The thing that may happen is a civil suit to your debtors to pay the bills in arrears.
The most important thing when having a credit card is discipline. Always remember that a credit card is not a "magic card" that can be used to pay every thing you want. However, it seems after knowing what will happen when paying the credit card above, mindblowings are sure that you will be wise to use it. Right, guys?