I have a credit card from past 8 months and I got fired from my company recently, will unable to pay my credit bills for the next month. What will be my punishment for not paying credit card bills on time? Will I go to jail?
No, you don’t go to jail if you are a credit card defaulter in India but that doesn’t mean there are no consequences.
Let’s be real - life happens. Sometimes you miss payments because of a job loss, health issue, or just poor planning. But it’s important to know what actually happens when you don’t pay your credit card bill for a long time. I have mentioned few points as per my knowledge:
- Your bill keeps getting bigger
You’ll be charged high interest (usually 3–4% per month) + late payment fees.
Even a ₹10,000 bill can quickly turn into ₹15,000–₹20,000 if you keep ignoring it. - Your credit score takes a hit
If your payment is delayed by over 60 days, your CIBIL score drops.
This means next time you apply for a loan, credit card, or even a home loan, banks may reject it - or charge you higher interest. - You’ll get calls and reminders
At first, it’ll be SMS, emails, and polite calls.
If it goes unpaid for months, the bank might assign collection agents and that’s when it can get mentally stressful. - You might get a legal notice
For big amounts, the bank can file a civil recovery case - not criminal.
So no jail but legal pressure is real, and your name might get listed as a “wilful defaulter” if you avoid paying despite having the means.
So, you must be thinking if there is a way out..
Yes. If you’re struggling, just talk to the bank.
They can help you with:
- EMI conversion
- Lower interest
- Or even a settlement plan (last resort)
The worst thing you can do is ignore it - it just piles up.
You won’t be arrested. But ignoring credit card dues can mess up your credit score, affect your peace of mind, and limit your financial future.
If you’re stuck, take a deep breath, call the bank, and work out a plan. It’s better to face it than run from it. And you will get a job soon and when that happens, it’ll all start falling into place. Good luck.