Late Payments

• If you have a late payment, you will be assessed a late fee by your credit card company. Once you are 30 days late, this information will be noted on your credit reports, which is a damaging entry for the next seven years.
  
  

Continued Delinquency

• As you continue not paying your credit card bills, collection calls will increase and your card will be cancelled. Further late payments and the account closure will be reported to your credit file.
  
  

Final Steps

• Once the debt is six months old, the credit card company will either turn it over to a collection agency or may choose to sue you. The collection agency could also opt to file a lawsuit to demand payment or simply keep trying to get the money.
  
  

Lawsuits

• If you are sued, you will be asked to come to court to defend yourself. If you fail to try to work the situation out, the creditor will win the lawsuit and be awarded a judgment.
  
  

Judgments

• Successful judgments are reported to your credit file. Your wages can also be garnished to pay the debt.