 TITLE: What to Do if You Can’t Pay Your Credit Card Bills CONTENT: How Unpaid Credit Card Balances Affect Your Credit\n--------------------------------------------------\nIf you don't take proactive measures, your credit can take a serious hit. Once a late payment is reported to the credit bureaus, a series of consequences can result, especially if you've chosen not to take any action. Here are some of the ways an unpaid balance can hurt your credit:\n*   Just one 30-day-late payment can drop your credit score. A late payment stays on your credit report for seven years, but its effect on your credit score can lessen over time.\n*   When a delinquency is reported, your account is no longer considered \"in good standing\" on your credit report.\n*   If more billing periods pass without you making a payment, additional missed payments will be recorded on your credit report.\n*   After 180 days, your credit card company may close your account and charge off your debt, resulting in an additional negative mark on your credit.\n*   At this point, your card issuer could sell your debt to a collection agency, which adds a collection account to your credit information.\n*   Payment history affects 35% of your FICO® Score☉ ; it's the largest single factor in determining your score. Every delinquency reported has the potential to bring your score down drastically.\n*   When your account is closed, the amount of credit you have available will drop. If you have other revolving credit accounts, this could affect your credit utilization, which is the amount of credit you're using compared with your total available credit. The \"amounts owed\" category, which includes credit utilization, makes up 30% of your FICO® Score.\n*   Closing your account also reduces the length of your credit history, which measures how long your accounts have been open. The age of your accounts make up 15% of your FICO® Score.\n*   Your unpaid balance is subject to late fees and penalty interest rates that can make it even more difficult to get back on schedule, pay down your debt or gain control of your credit utilization.\nDo everything you can to avoid the above consequences. If you can afford it, be sure to pay at least the minimum credit amount required on all your accounts. You could also continue to revisit your budget and look for ways to bring in a bit of extra income each month. Debt consolidation could be a good option if you are dealing with high-interest debt. For help with any of the above, consider working with a qualified credit counselor (more on this below). Their services are free and can save you untold trouble and stress when your finances are in crisis. END