What happens when you stop making monthly minimum payments on your credit card?

When a credit card holder stops making the minimum payment, late fees do continue to accumulate each month, but that's just one part of what happens. Here's what typically occurs:

Late fees are charged each month you miss a payment (usually $25-$40 per missed payment, depending on your card agreement)

The account enters delinquency status, which progresses through stages:

30 days late

60 days late

90 days late

120+ days late

The interest rate often increases to a higher penalty APR (which can be 29.99% or higher)

Credit reporting begins, with increasingly severe negative marks appearing on your credit report as the delinquency continues

After approximately 180 days (6 months) of non-payment, the account is typically "charged off" by the credit card company, meaning:

They write it off as a loss for accounting purposes

The account is closed/terminated

The debt is either sold to a collection agency or pursued through their own collection department

Even after charge-off, you still legally owe the debt, and interest and fees may continue to accrue according to the original card agreement. The debt can remain collectible for several years (the statute of limitations varies by state, typically 3-10 years).

If you're having trouble making payments, it's usually better to contact your credit card company directly to discuss hardship programs or payment arrangements rather than simply stopping payments.