Once an account is in collections, you no longer have the option of making minimum monthly payments. The collection agency will demand the full balance and sometimes even an additional fee, as allowed by law. Collection agencies contact you repeatedly until you pay up and can even place the delinquent account on your credit report. Pay on time and you can avoid dealing with debt collectors. While the penalty rate will expire if you pay on time six months in a row, in some cases, the penalty rate will continue to be applied to new purchases as long as you have that credit card. Paying your credit card on time prevents you from triggering a higher interest rate on your credit cards. Credit card issuers are allowed to raise your interest rate on any other credit cards you have with them, even if you’ve always kept up with those payments. Make your credit card payment before the due date to avoid the risk of missing the payment cutoff time.
