Here's the timeline of what actually happens, because it's more predictable than you'd think.
Days 1 to 30: You get a late payment notice. A late fee of $25 to $40 gets added. Your promotional or lower APR may be revoked and replaced with the penalty APR (often 29.99%). After 30 days, the late payment gets reported to the credit bureaus and your score drops 60 to 110 points depending on where you started.
Days 30 to 90: More late fees. More calls. Each 30-day mark (60 days late, 90 days late) gets reported separately and does additional damage to your credit score. The card issuer's internal collections team starts calling more aggressively.
Days 90 to 180: Your account gets "charged off," usually around 180 days. A charge-off doesn't mean you don't owe the money anymore. It's an accounting move by the bank acknowledging they don't expect you to pay. The charge-off goes on your credit report and stays there for seven years from the date of the first missed payment.
After charge-off: The bank either sends your account to a third-party collection agency or sells the debt to a debt buyer for pennies on the dollar (typically 4 to 10 cents per dollar). Now a collector is calling instead of your original credit card company.
Potential lawsuit: If the amount is large enough (typically $3,000+), the original creditor or the debt buyer may sue you. If they win a judgment, they can garnish your wages (up to 25% of disposable income in most states), levy your bank account, or place a lien on property. Not everyone gets sued, but it's a real possibility, especially for larger balances.
There are situations where people strategically stop paying as part of a debt settlement plan. Settlement companies instruct you to stop paying creditors and instead save money in a dedicated account, then use that money to negotiate lump-sum settlements for less than you owe. This strategy works but comes with all the credit damage described above plus settlement fees of 15% to 25% of your enrolled debt.
If you're considering stopping payments, talk to a nonprofit credit counselor first. There may be better options (hardship programs, debt management plans) that address your situation without the credit destruction.