Imagine this: you have a balance on your credit card that you haven’t paid for many months and you’ve noticed that the credit card company has stopped sending you statements. Hmmm… Does this mean your debt has been forgotten or forgiven by your credit card company? The answer is most likely “no” – keep reading to find out why!
Normally, credit card companies are obliged to keep you informed about the status of your debts by sending you monthly statements of your accounts. However, under a certain set of circumstances, the credit card company is allowed to stop sending you monthly statements. This is when you’re in arrears (default) with the payments and ALL of the following circumstances apply:
- You haven’t made a charge or payment on your credit card during the preceding month
- Your account has been suspended or cancelled by your credit card company
- The credit card company has demanded payment of the amount owed
If you’re not getting monthly statements, it’s important to remember that you still owe your credit card company for the debt that’s still on your account. In fact, if your agreement with the credit card company requires for you to pay interest on the outstanding balance, you’ll continue to accrue interest on the total amount you owe. That means if you have a high-interest credit card (say, 29.9%), the total amount you owe could grow by more than 33% during a 12-month period – ouch!
If you are in a situation where you cannot make payments on your credit card, you may consider contacting your credit card company to see if you can negotiate a way to deal with the debt.
We hope this information was helpful!