A credit card, along with all its benefits, also comes with a set of financial responsibilities for the user. These include the obligation to pay all the outstanding dues (preferably by the due date), payment of associated charges like joining fee and renewal fee among others.
At times, it may be difficult for you to pay the pending dues on the card. Particularly, if you are moving abroad shortly, the temptation to abandon the credit card without repaying the dues may be difficult to ignore. But this is a grave financial mistake that you should refrain from committing. The reasons for the same have been listed below.
The Debts Continue to Exist
Don’t assume that just because you are exiting the country, the credit card debts would follow suit. The credit card issuer would continue with its efforts to recover the money from you. It would start the process by sending your intimations through emails and phone. With time, the recovery methods would turn more coercive and unavoidable.
A Serious Drop in your Credit Score
Evading credit card dues is a sure-shot way to delivering a severe blow to your credit score. And if you have plans of returning to the country in the future, it would be an uphill task for you to boost up your credit score again.
Difficulty in Getting a New Credit Card:
Since you are moving to a new country, you have to build your credit history from zero in order to apply for a new credit card. And there are reasons galore why it would not be an easy task for you. Until you get your new credit card, you would have to tackle your expenses through cash.
Other Serious Consequences
Depending on the size of the debt, your credit card issuer may also file a lawsuit against you, thus drawing you into the legal scenario with its countless hassles. Your creditor may also engage some third party to recover the dues from you. In certain cases, it may also freeze your account until the dues are paid in full.
Considering the above points, it’s not difficult to conclude that you would not be gaining anything worthy if you relocate to any other country without paying your credit card dues. Also, you should be aware that even if you are facing some difficulty in making the payment at present, there are options that you could explore to make your life easier.
Some of the Ways to Deal with the Problem are Mentioned Below
Explore the Payment Possibilities
Do analyse all the fund resources that you have access to for making the credit card payment. If you have accumulated reward points on your card, check if they can be used to make a part payment of the outstanding amount. Also, cut down on the card usage if you know that you would encounter difficulties in paying the debt before your departure.
Talk to your Lender
You may approach your credit card issuing company and seek a debt settlement which would allow you to pay off a smaller amount and settle the account. Although this is not the best thing to happen to your credit score, it’s way more honourable than leaving the country without not paying the dues at all.
Alok Kumar is a Personal Finance Blogger and Writer with more than five years of experience he is running FinanceWikki to educate people about Financial planning and money making tips on various investment plans. He always excited to learn and share new methods & Idea’s to save and grow money.