At first it seemed like a honeymoon with your credit card. You enjoy a 0% intro APR with a no annual fee credit card. You go out shopping without any concerns of paying the interest. It's just like shopping with cash and paying it back on an installment basis. Like most of the common 0% intro APR credit cards, you will enjoy this interest-free for about six months, and if you have a good credit rating, you can even have it for 15 months.
Then the problem sets in when the 0% rate expires. Little did you know that the balance from your last month's bill will be transferred to your current rate, and you have to live with a rate of more than 15%. From 0% to 15% is big money considering the things that you paid for with your credit card monthly. You try to pay the credit card company, but all you end up paying is the interest rate, and the charges will just pile up every month. In the end, you are swamped with the payments, and you're forced to declare bankruptcy. You don't have any money to pay them, and one day they show up to your door with papers telling you "see you in court".
The good news is, you will not be going to jail just because you can't pay your credit card bills. It's only a civil case and you can't really be jailed for this. All that will happen is that they will give you credit repair to help you with the payment. They will be giving you leeway in your payment plan, and you will have an easier time in paying that credit card debt that you have incurred.
If you think you got off easy with your credit card debt, think again. You may have a great plan in paying those debts, but your credit rating is so low that you will not be qualified for anything at all. Your salary will just go to your credit card debts automatically. It will take more than two years to repair your debt, and it will take more than seven years if you want the record of declaring bankruptcy to be removed. It's like going into financial jail because of the limited resources you have, and the support that you need to pay your debt is really limited.
Considering this will happen if you don't pay your credit card bills, make sure you act on them before something bad really happens that will affect in your credit rating. Aside from paying your bills on time, you should at least pay your bills with the principal. If you slowly clear off your credit card payments, you will gradually see the difference on your credit card statement, and most of all, your credit rating will go up and your 0% APR credit card application will not last for only six months as when you were a student, but it will last for 15 months with better rates and more cash rewards. It's definitely better than declaring bankruptcy.
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