The practicality that the credit card gives us, making it possible to spread large amounts to pay little by little is a hand in the wheel, isn't it?

But that's where the danger lies. If there is not a minimum of financial education on the part of consumers, debts can get out of control, turning into a huge snowball.

Debts with credit card are among the most expensive in the world. Therefore, financial planning is needed so as not to end up having to pay absurd amounts due to very high interest rates.

But nothing is lost! Here, you will clear all your doubts about how to settle credit card debts, the consequences for those who do not pay and finally know if the card debt expires or not.

There are numerous reasons why someone might not pay their credit card debt. But, the consequences are always the same.

It is already known that being in debt greatly harms the chances of you getting approved for financing or even getting another card. But what many say is that after 5 years this debt simply disappears, is that really true?

Popularly called expired debt or prescribed debt, after 5 years without paying – and consequently without having credit – your name will leave Serasa. That is, when you apply for credit, the company will consult Serasa and there will not be any notes in your name there.

However, if you decide not to pay the debt, even after it expires, you will continue to owe. And if your debt is from a bank, for example, even after 5 years without paying it, you will not be able to have your credit approved again. This is because the company's database will contain notes about your debt. And in fact the bank will not want to give you credit if you are not a good payer.

The truth is that this 5-year period for the debt to expire does not cancel your debt. And yes, it gives companies the right to charge you. Therefore, even then your debt will be registered and growing. Well, nothing prevents companies from continuing to accrue their interest.

In addition to being in default, if you don't pay your bill, you still run the risk of having your card canceled and having your name negated in credit protection agencies.

And if you thought it couldn't get any worse, know that your expired debt, in addition to accumulating, can still be legally charged in accordance with article 205 of the Brazilian Civil Code.

If your creditor decides to file a lawsuit, the statute of limitations expires. Starting to count according to the processing time of the process.

It could be credit card debt or a bank debt. If you don't pay, you will continue to owe, with a low credit score and little chance of getting back on the credit market.

Take great care in choosing not to pay off debt. This is because Brazilian interest rates are among the highest. And a small debt, can get out of your control becoming increasingly difficult to pay, and spending 5 years to have a possible normal spending routine is a long time to wait.

Therefore, the ideal thing to do in this case is to negotiate your debt even after it expires. In addition, it is important to carry out an analysis of expenses to find out which ones can be cut so that you do not again owe more than you can pay and repeat the same mistakes.

High interest rates are the main villains that prevent people from paying off their debts. If you can't pay the entire bill and decide to delay payment, that's where the danger lies.

That's because, you start to enter the card's revolving credit, in which interest on interest is generated every month with rates around 300% per year, putting you in a big problem that seems to have no end.

So do your best to pay at least the minimum amount. And never delay payments. Because otherwise your situation will only get worse.

By paying the minimum amount, the remainder of your debt will roll over to the next month's invoice along with an increase in interest. Being in this situation, it is easier to reverse, starting to have control over your expenses until you pay off your debt.

Paying half the invoice or the minimum amount is better than paying absolutely nothing, right?

So with that you have some positive points when negotiating your debt with the company. Because it shows that you are wanting and striving to get out of debt.

Remembering that it is somewhat dangerous to pay the minimum amount of the invoice every month. Possibly it will become a snowball and that's not what you want. Therefore, do your best to pay the full amount of the invoice as soon as possible.

If it is not possible to pay in the next month the total amount of what was left of the previous invoice, plus the interest accruals, there is the alternative of asking for a personal loan.

This loan usually has lower interest rates compared to credit card. So, it is very important that you analyze the advantages and disadvantages well, compare interest rates, installments and especially the time it will take to hire. Well, don't forget: the longer you wait, the higher the debt becomes and consequently the greater your difficulty in paying.

There is no magic formula. Only money will solve this problem, and you need to be very careful with those who promise you a lot of facilities, because from what you must have read so far, it is clear that things will not be simple. But nothing is lost, stay calm, start with paying off your debts as a priority and cut unnecessary expenses.

The rule is simple, do your best not to get into this type of problem, let alone repeat previous mistakes. Be conscientious and only spend what you can afford.

When you acquire a card, there is a whole analysis of your profile that precedes the process. You need to be a potential payer to get credit from companies and if you're already having problems with your card revolving, it gets even more complicated.

Charging the card works as follows: when you don't pay even the minimum amount on the bill, that amount is automatically credited to the card. Thus, you will only have 30 days to pay the total amount of the invoice and if you do not pay the interest, it will only tend to damage your debt.

Every company that lends you money or gives you credit assumes the risk of not having the amounts returned within the estimated period and to compensate for this time, interest is charged for the time that the amount remained unpaid. And when it comes to Brazil, the interest rates are extremely high, bordering on the absurd.

There is the possibility of paying the credit card bill in installments and without a doubt this is the best alternative when you cannot pay the full amount.

The installment payment is an agreement that you make with the company issuing your card, informing you that it will not be possible to pay the total amount, thus negotiating an installment payment of the invoice amount that will be divided over the following months.

This minimum amount exists as a last chance for you not to be in default and when you do not pay the full amount of the invoice, two options will be given to you:

– Enter revolving credit: you have another 30 days to pay the amount of the previous invoice plus the current invoice, without installments.

– Choose to pay in installments: negotiate with your card company to divide the amount monthly.

After 5 years, any unpaid debt, whether on a credit card or loan, expires. That's because, the Consumer Protection Code says that every debt has a maximum period to be collected.

Even so, you are not debt free and the world of credit will be open to you. Furthermore, financial institutions can consult their debts – even after they expire – through the Central Bank system.

Knowing that your debt is forever registered with the Central Bank even after you leave Serasa, this reduces your chances of getting credit. And when you need emergency money for difficulties you may not be able to apply.

That is, it is not worth waiting for the debt to expire. In addition to problems during the initial 5 years of debt with the phone ringing countless times to deal with collections, you will be surrounded by a series of restrictions that will prevent you from making meaningful purchases.

But remembering that if you stop paying a card, it doesn't mean that the other cards you have will be inactive. You can continue to use this payment method normally, you just won't be able to apply for credit.

Now that you know that your credit card debt expires, but that you will still have difficulties applying for credit in the future, the only plausible alternative is for you to try to negotiate your debts and settle them as soon as possible.

If you owe the debt, you must pay it. And it is only in this way that you will be able to re-establish relations with the company, peace of mind and financial health. Remember to ask for a contract review to get a good deal.

Brazil has more than 63 million defaulters and this is worrying data. More than 40% of adults say they have a bill they can't pay, so hey, you're not alone.

Factors such as unemployment are the main causes of so many people in default without being able to pay their bills and knowing that, be smart not to extrapolate on expenses.

Thinking of helping you, here are some tips on what you can do to get back to being a more organized person in relation to your debts:

If you can, pay everything up front so you can focus on your main goal, which is to get rid of debt.

Now you know more about credit cards and how credit card debts expire.

If you need to, use the resource to expire credit card debt, but before that, take advantage of the tips to organize yourself financially and not get into trouble again!

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