What happens if you don’t pay your credit card bill?
Missing one credit card payment results in a late fee, missing several harms your credit score. If you stop repaying your card in the long-term you may end up getting hassled by debt collectors or even sued.
If you miss a credit card repayment, the consequences vary from a late payment fee to a black mark on your credit history.
If you're struggling financially or dealing with other issues, talk to your bank or card company first. You may be able to set up a payment plan or get a hardship variation.
If you're worried or stressed about credit card debt right now, call the National Debt Helpline on 1800 007 007 to speak to a financial counsellor for free.
What happens if you don't pay your credit card bill?
You could be charged a late payment fee. Most credit cards charge a fee if you don’t pay the minimum amount required by the due date on your statement. This charge typically ranges from $5 to $35 and is applied after the due date on the statement.
The details will be added to your credit report. Depending on how late the payment is and when you settle it, missing your credit card due date could cause your credit score to drop, which reduces your chances of getting approved for new loans.
You’ll be charged more interest. When you miss a payment, interest will be charged for all transactions during the statement period. You’ll also be charged interest on any late payment fees, so these costs could quickly add up.
It may lead to a default notice. If you have an overdue payment of more than $150 for 60 days or more, it can be classified as being "in default". This results in an official notification from your credit card issuer and a listing on your credit history. Default account listings are a major black mark and will remain on your credit report for up to five years.
Your debt could be passed on to debt collectors. If you don't make a payment on your credit card account for more than 60 days, your issuer may pass the debt on to a debt collection agency.
Keep in mind that these consequences don't happen to everyone. Even if a provider takes a few of these actions, it would usually be over a period of time.
If you have missed payments, try to pay them back as soon as possible. The longer you leave it, the worse it gets.
You won't get interest-free days
Once you start missing repayments you don't just get charged late payment fees. You also miss out on interest-free days. This means any new spending on the card gets charged interest right away.
You'll have to pay your balance in full for at least two consecutive statement periods to be eligible for interest-free days again.
You might lose your reward points
Most credit card issuers reserve the right to freeze or cancel your reward program privileges (including earning points for purchases) if you don’t make a payment by the due date on your statement.
The American Express Membership Rewards program terms and conditions even state that your enrolment may be cancelled if your payment is more than 40 days overdue.
What to do if you can’t afford to pay your credit card bill on time
If you know that you won't be able to make a payment by the due date on your statement, here are 3 steps that you can take to resolve the issue.
Contact your credit card company. Call your credit card company and let them know about your circumstances so that they can work with you to resolve the situation.
Request a due date extension. If you know when you will have money to pay at least the minimum amount owed on your card, you could ask your credit card provider to extend the due date. If your request is approved you could avoid fees and negative details on your credit report. This will be at your provider's discretion.
Suggest a hardship variation or hardship support. If you’re experiencing ongoing financial hardship or illness and don’t know when you’ll be able to make the minimum payment on your credit card, you can ask for a hardship variation. This is when your card provider temporarily changes the terms of your credit contract to give you more time to repay the debt.
What is a hardship variation?
Legally, if you apply for a hardship variation your credit card provider must give you a response. If your request is rejected, you should get an explanation.
Hardship variations could involve some of the following options:
A freeze on your credit card account, meaning you won't be able to use it for new purchases (which would add to the debt).
A payment pause where you won't have to make repayments for a limited time due to hardship (such as job loss or significant illness).
A payment plan to allow you to repay the debt over time.
Your credit card provider may also suggest other options that takes the immediate pressure off of you while you deal with the situation.
If you're feeling overwhelmed by credit card debt, remember that support is available and there are different ways to deal with it. The first step is usually talking to your credit card provider, or getting support through the National Debt Helpline (1800 007 007) or another independent service that can help you get back on track.
Could I be sued for unpaid credit card debt?
If you have unpaid credit card debt, the creditor (in this case, the bank or credit card company) could sue you by seeking a court order stating that you owe them money.
If you do receive a summons or statement of claim from a court, the National Debt Helpline says you have 6 options:
Negotiate with your creditor to repay the debt.
Lodge an external dispute resolution (usually with the Australian Financial Complaints Authority).
Confess that you owe the debt.
Go to court and defend the action.
Ignore the complaint, in which case your creditor is likely to win a default judgement.
Apply to the court to repay the debt in instalments.
Debts of this kind are a civil matter rather than a criminal one. You won't go to jail for unpaid credit card debt in Australia.
Could you manage your finances without a credit card?
29% of Australians surveyed said they cannot manage their budget or finances without a credit card, according to our consumer sentiment tracker. A credit card can be useful for managing your spending and earning points if you pay it off each month but it's risky to rely on a credit card when you can't afford to pay back what you spend. A credit card's fees and interest charges can add to your costs and cause financial difficulties over time.
Frequently Asked Questions
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.
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.
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.
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.
Amy is an experienced journalist with over 16 years of experience, contributing to major publications like Money Magazine, The Sydney Morning Herald, and ABC News Australia. Specialising in personal finance, she frequently appeared in media outlets and on radio. Amy holds a Bachelor of Arts in Journalism and Drama from Griffith University and earned RG146 certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, ensuring her expertise is grounded in current financial regulations. Amy was Finder's Senior Writer for Credit Cards from 2016 to 2024. See full bio
Amy's expertise
Amy has written 534 Finder guides across topics including:
Richard Whitten is Finder’s Money Editor, with over seven years of experience in home loans, property and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Graduate Certificate in Communications from Deakin University. See full bio
Richard's expertise
Richard has written 621 Finder guides across topics including:
I not sure where to seek assistance, my partner and I have 6 credit cards between us. He has been sick over the last 12 months and although we make the payments each month we are about 3 weeks late each time. We are drowning in credit card debt. I have tried to refinance our mortgage but have been knocked. Where do I go for a debt consolidation loan?
Finder
JoshuaNovember 26, 2018Finder
Hi Michelle,
Thanks for getting in touch with Finder. I’m sorry to hear about your situation.
Our guide on refinancing to consolidate debt explains how to refinance your home loan to consolidate personal loans and credit card debts. To find a lender that may consider you for this, you need to speak to a mortgage broker. They have the right knowledge and experience to help you explore other options.
I know that your situation is kind of tough. For this reason, you might want to read our guide on how to deal with debt.
Finally, please feel free to obtain financial counselling to help you take control of your finances. One place to start is with the National Debt Helpline (1800 007 007). This free national hotline will help you find a financial counsellor, while you can also search for a counsellor through the Helpline’s website (www.ndh.org.au).
I hope this helps. Should you have further questions, please don’t hesitate to reach out again.
Have a wonderful day!
Cheers,
Joshua
ConcettaMay 14, 2018
Have a wonderful credit score but it’s been very difficult to pay American Express. Been a member since 1989 and never missed however now at 76 and still working and not making a good salary. I cannot fulfill my obligation. How can I get them to cut the all interest in half so I can afford the payment without adding years?
NikkiMay 15, 2018
Hi Connie,
Thanks for your message and for visiting finder – the leading comparison website & general information service built to give you advice in your buying decision needs. How are you doing today?
We fully understand what you’re going through. There are ways to help you make payments on your card and maintain a good relationship with your bank. The information below lists down what you can do.
1. Contact your credit card company.
Call your credit card company using the phone number on the back of your card on in the information booklet and let them know about your circumstances so that they can work with you to resolve the situation.
2. Request a due date extension.
If you know when you will have money to pay at least the minimum off your card, you could request that your credit card company extend the due date for this particular statement. If your request is approved you could avoid fees and negative details on your credit report, but it will be at your credit card company’s discretion.
3. Suggest a hardship variation.
If you’re experiencing ongoing financial hardship or illness and don’t know when you’ll be able to make the minimum payment on your credit card, you may want to consider a hardship variation. This is a formal legal process where you ask your lender to vary the terms of the contract. It could involve a payment plan, a freeze on your account or some other option that takes immediate pressure off you while you deal with the situation.
If multiple debts are a factor, it’s also important to deal with them as quickly as possible so that you don’t end up with a lot of overdue accounts. You can start by creating a budget based on your income and the required minimum payments for each debt, as well as potential interest charges. You may also want to consider consolidating debts with a balance transfer credit card or personal loan to make fewer payments and save money on fees and charges.
Hope this was helpful. Don’t hesitate to message us back if you have more questions.
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I not sure where to seek assistance, my partner and I have 6 credit cards between us. He has been sick over the last 12 months and although we make the payments each month we are about 3 weeks late each time. We are drowning in credit card debt. I have tried to refinance our mortgage but have been knocked. Where do I go for a debt consolidation loan?
Hi Michelle,
Thanks for getting in touch with Finder. I’m sorry to hear about your situation.
Our guide on refinancing to consolidate debt explains how to refinance your home loan to consolidate personal loans and credit card debts. To find a lender that may consider you for this, you need to speak to a mortgage broker. They have the right knowledge and experience to help you explore other options.
I know that your situation is kind of tough. For this reason, you might want to read our guide on how to deal with debt.
Finally, please feel free to obtain financial counselling to help you take control of your finances. One place to start is with the National Debt Helpline (1800 007 007). This free national hotline will help you find a financial counsellor, while you can also search for a counsellor through the Helpline’s website (www.ndh.org.au).
I hope this helps. Should you have further questions, please don’t hesitate to reach out again.
Have a wonderful day!
Cheers,
Joshua
Have a wonderful credit score but it’s been very difficult to pay American Express. Been a member since 1989 and never missed however now at 76 and still working and not making a good salary. I cannot fulfill my obligation. How can I get them to cut the all interest in half so I can afford the payment without adding years?
Hi Connie,
Thanks for your message and for visiting finder – the leading comparison website & general information service built to give you advice in your buying decision needs. How are you doing today?
We fully understand what you’re going through. There are ways to help you make payments on your card and maintain a good relationship with your bank. The information below lists down what you can do.
1. Contact your credit card company.
Call your credit card company using the phone number on the back of your card on in the information booklet and let them know about your circumstances so that they can work with you to resolve the situation.
2. Request a due date extension.
If you know when you will have money to pay at least the minimum off your card, you could request that your credit card company extend the due date for this particular statement. If your request is approved you could avoid fees and negative details on your credit report, but it will be at your credit card company’s discretion.
3. Suggest a hardship variation.
If you’re experiencing ongoing financial hardship or illness and don’t know when you’ll be able to make the minimum payment on your credit card, you may want to consider a hardship variation. This is a formal legal process where you ask your lender to vary the terms of the contract. It could involve a payment plan, a freeze on your account or some other option that takes immediate pressure off you while you deal with the situation.
If multiple debts are a factor, it’s also important to deal with them as quickly as possible so that you don’t end up with a lot of overdue accounts. You can start by creating a budget based on your income and the required minimum payments for each debt, as well as potential interest charges. You may also want to consider consolidating debts with a balance transfer credit card or personal loan to make fewer payments and save money on fees and charges.
Hope this was helpful. Don’t hesitate to message us back if you have more questions.
Cheers,
Nikki