What to Do When You Can’t Pay Your Credit Card Bills


Having access to money on demand through credit cards can be fun and beneficial. However, a good debtor must remember the first word in the phrase “credit card”. A credit card is a debt that must be paid back at some point in time. Anyone who is finding it difficult to keep up with the balances on his or her cards should take action as soon as possible. A certain strategy prevents a struggling debtor from sinking deeper into debt. Debtors can practice the following strategy to recover some financial stability and get back on the right track:

1. Put on the Red Light

As soon as a debtor notices that he or she is struggling to pay back credit card bills, it is time to freeze all credit transactions. Anyone who cannot pay the minimum fee on a credit card is in trouble. Therefore, that person must stop accumulating debt immediately. The consumer does not necessarily have to cut up his or her cards unless the temptation to spend continues to increase. In that case, perhaps a pair of scissors and a wastebasket would come in handy. Freezing debt accumulation is the first step in regaining balance.

2. Communicate With Creditors

Communicating with one’s creditors is a great way to avoid late fees, penalties, and increased interest rates. It is always better to make a phone call and speak with a credit card company than to ignore the problem and miss a payment. Some creditors will extend the time for a debtor to make a payment. Other creditors may waive a late fee as a one-time courtesy. Additionally, some debtors have payment protection policies on their accounts. Depending on the situation, the debtor might be able to activate the payment protection for up to one year.

3. Earn More Money

The best way to pay down debt is to increase income. A debtor could speak with his or her supervisor about increasing hours for a short time. He or she could also find work online in a plethora of places. Some examples of online side jobs are transcription jobs, search engine guiding, freelance writing, marketing, web design, and online auctioning. These positions do not require much more than internet access and a sense of creativity. The best aspect of working online is that a debtor can make his or her hours. He or she can fit the hours into whatever schedule he or she is working on.

4. Save Money

Saving money prevents the need for credit cards. No matter how much income a person has or what his or her expenses may be, one can always save something. Even if the debtor can only save five dollars per week, it will add up gradually and form an emergency fund. That way, when the car breaks down, the consumer can borrow the funds from the emergency fund rather than charging the automobile repair.

5. Seek Debt Relief Help

Before the debt gets out of hand, a consumer can search for reputable debt relief companies for help. Many services are available for debtors who are having difficulty paying down credit cards. Credit counseling can help a person to develop better budgeting and saving strategies. Consolidation can assist in making payments lower and more memorable. Bankruptcy can help to eliminate debt. Settlements can reduce a large portion of the overall debt.

The only step in the process that the consumer must follow in order is step one. A person cannot pay credit card bills while he or she is increasing the balances. After the person stops racking up debt, he or she may adjust the strategy according to his or her liking.

This post was written by

jason – who has written posts on Budget Clowns.
Father of three and married to a lovely women. Always looking for ways to save money, and invest it properly for my children's future.

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