economy
What happens to credit card debt if you become disabled and can't work?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms.
TL;DR
- Credit card debt does not disappear with a disability; interest and fees continue to accumulate.
- Missed payments lead to late fees, penalty APRs, and negative credit report marks.
- After about 180 days of nonpayment, accounts are typically charged off and sent to collections.
- Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) payments are generally protected from wage garnishment.
- Some credit cards offer disability insurance or hardship riders that may provide payment pauses or interest waivers.
- Options for managing unmanageable debt include contacting the issuer for hardship programs, credit counseling, debt settlement, or bankruptcy.
- Acting quickly to understand available protections and programs can increase your options for relief.