Jul24
Credit Card Woes: When Making the Minimum Payment Becomes Difficult
It comes as no surprise that millions of credit card holders are struggling to make ends meet. From mountains of debt to increasing credit card fees and interest rates, many consumers have found themselves in the unfortunate position of not being able to pay the minimum payments on their credit cards.
You’ve always paid your bills in the past; you managed your credit card debt; and you were always able to make the minimum payments – if not more –on your credit cards. Your job hours have been cut, your variable interest rate on your mortgage just changed, and you’re struggling to pay your everyday bills, let alone your credit cards. What do you do?
First and foremost, you can not afford to avoid paying your credit card bills. Although it is important to first pay your secured credit, such as your car payments and home loans, not paying your credit card bill should be your absolute last option.
The bottom line is that your credit score, if it is strong, can continue to provide you with options, while a poor credit score can close off doors and leave you with few options regarding your ability to obtain any type of credit. It is therefore of the utmost importance to do everything in your power to continue to pay your credit card bills each and every month.
Your Options
That is not to say, however, that you don’t have options regarding your credit card’s minimum payment. Your first order of business is to contact your credit card company and explain your financial hardships to them.
Given the current state of the economy, many credit card companies are willing to negotiate lower monthly payments. If you have been a good customer with a good credit history then it is likely that your credit card company will work with you. In addition, many credit card companies have financial hardship programs for which you may be eligible.
The absolute worst thing you can do is to either not make the minimum monthly payment or not make the payment at all. You cannot afford to pay outrageous late fees and you certainly cannot afford to destroy your credit.
Finally, you may want to seek the services of an accredited consumer counseling service in your area. A reputable credit counselor may be able to help you (a) lower your monthly payments; (b) lower your interest rate; and (c) pay off your debt.
