Credit Card Debt
Overusing Credit Cards
One payment missed:
If you have a good borrowing history, your credit card company may simply send you a polite reminder letter for payment.
Two payments missed:
You will get a written request and possibly a phone call demanding payment.
Three payments missed:
Each creditor will enlist a Collection Agency to press you for payment. Collection agencies may use a variety of tactics to get the money, including threats.
If you still haven’t paid off your credit card debt, court action may be taken against you.
Canadian Government Regulations
Lowered interest costs by mandating allocations of payment in favour of the consumer. For example, any payment made in excess of the required minimum must either be allocated to the balance with the highest interest rate first or distributed proportionally to each type of balance (cash advances, purchases, etc).
Provide information on the cardholder’s monthly statement on the time it would take to fully repay the balance, if only the minimum payment is made every month. For example, a balance of $1,000 on a credit card that charges 18 percent could take more than 10 years to pay off.
Mandated advance disclosure of interest rate increases prior to their taking effect, even if this information had been included in the credit contract.
Learn How to Pay Off Your Credit Cards