What happens if you don't pay a credit card in Australia?

In Australia, if you do not pay your credit card bill on time as a one-off, you will usually incur a late fee of $15-20, and interest charges will accrue on all of the purchases you made during that statement period. If you are late with your payments consistently, these extra charges will start to add up – and your credit score will drop. Continued non-payment may result in legal action, and the debt could be sold to a collection agency.

Does credit card debt go away after 7 years?

Credit card debt does not simply go away after 7 years. However, negative information like missed payments may be removed from your credit report after 5-7 years. The debt itself remains until paid or settled.

Can I walk away from credit card debt?

If you choose to walk away from credit card debt, there will be a range of consequences as the lender is likely to take steps to recover what is owed. Walking away (or no longer making payments) could result in the lender taking legal action against you, and could potentially result in the loss of assets if they attempt to recoup their loss. This will also damage your credit score . If you're in a stressful situation with your finances, consider reaching out to the Financial Debt Helpline for free, confidential advice and support.

What happens if I don't pay my credit card and leave the country?

If you leave the country without paying your credit card , the debt remains, and your credit score will be impacted. Depending on the amount and your location, creditors may still pursue you internationally or sell the debt to a collection agency.