Try to pay the minimum amount; if you are unable to pay the total credit card balance, pay the minimum amount. As long as you are paying any figure equal to or higher than the minimum amount, the credit card company will NOT sue you or initiate any litigation on you.

But, if your monthly payment is lower than the minimum amount set by them OR you are not paying at all, your creditor can place your account on collection. Most of the time, in-house collection agencies will handle the case. However, if the account remains default for more than one year, chances are high that the creditor will sell off the account to debt buyers or third party collection agencies for pennies on dollars.

At the same time, they will report your account as ‘bad debt’ to get a tax benefit. This is a serious derogatory mark on your credit report. You should always try to avoid these. Moreover, it is a real headache to deal with third party collection agencies.

The solution is: if at any point of time, you feel that you are unable to pay even the minimum amount, call your creditor and discuss the matter. They may lower the rates and help you in paying the balance comfortably.