When you sign up for a mobile phone plan, you enter into a contract with your respective provider where you agree to pay for your service for the length of your contract, be it one or two years, or month-to-month. Unfortunately, financial issues may arise during that time that prevent you from paying your phone bill. While it is not a crime, the punishments for failing to pay your mobile phone provider can really eat into your lifestyle, affect your credit, and cost you in unnecessary late fees. 

Here is what happens when you stop paying your phone bill.

Late Fees and Warnings

Phone contract payments are generally due every 30 days. Similar to unpaid credit card bills, phone bills will incur a late fee if a payment is not made by the due date. Typically, service providers will charge you a late fee of $5.00 or up to 1.5% of the outstanding balance. Oftentimes, late fees are applied within 24 hours after the original due date. After two consecutive months of missed payments, your late fees will double, and your service provider can report your missed payments to the credit bureaus.

Flagged Credit Reports

Not making a phone bill payment for 90 days can have as serious an effect on your credit score. The credit bureaus typically follow the 30-, 60-, 90-day rule when reporting missed payments. This means they generally won't report a missed payment on your credit report for anywhere between the first 30–90 days. However, if your phone bill payment is 90 days past due, your balance can be reported and potentially sold to a collections agency. This will cause your credit score to plummet.

Collections Reporting 

Collections agents are notoriously relentless in their pursuit of recouping payments. Once you have been reported to collections, you will begin to receive an onslaught of calls and mail reminding you that you’re delinquent on your phone bill and demanding payments. The endless calls push the envelope of harassment and can only be stopped by either paying off your balance and late fees or declaring bankruptcy.

Discontinued Phone Service 

Repeated late or missed payments to your phone bill will ultimately cause your services to be cut, as all the major phone carriers have policies in place that include shutting off your service after a certain period of delinquency. Most major carriers like AT&T, Verizon, and T-Mobile allow a 60-day grace period for delinquent customers to get their finances in order before suspending service. Sprint, on the other hand, is less tolerant towards missed payments, as their policy warns of suspended service and reporting delinquent accounts to collections within 30 days of the first missed payment.

It’s clearly important to make your agreed-to payments on time in order to avoid such severe action toward your credit score, bank account, and ability to use the phone. If you have trouble managing your bills and are consumed with mounting debt, there are professional debt relief consultants who know how to negotiate with lenders and get collections agents off your back.

Professional Debt Negotiators

The debt relief experts at Progressive Debt Relief will negotiate with your creditors to settle down your debt and get you better and more manageable terms and conditions. If you are struggling to pay your phone or credit card bills, contact us today and schedule a complimentary debt relief consultation.