‘A recent survey reports that an estimated 40 million Americans expect to make a mess of their financial life this year by missing a credit card payment’.
Do that and you are setting off an avalanche of problems. ‘There’s the late fee that may cost $35, or more. And if you’re 60 days late, your credit card can slap an interest rate of up to 30% on your entire balance. And then there’s the damage to your FICO credit score, as on-time payments are the single largest factor in calculating your score’.
If you think you may miss a payment sometime this year or, like the average U.S. household are more than $15,000 in credit card debt, then right now is the time to hatch a plan to get back on track!
There are four strategies to stop missing your credit card payment. Find out below:
- Pay more than your monthly minimum payment. The more your stretch, the longer it takes to pay off. Try ‘debt snowball’ or ‘debt avalanche’ methods. Automate payments wherever you can.
- Accumulate all your debts into one account. Shift to a zero-balance credit card or apply personal loans that have lower interest rates.
- Instead of shying away from the creditors, have an open discussion with them. Come up with a plan that helps you with the credit card payment.
- If you are struggling to pay off loans, seek help from counselors and devise a debt management plan. You can also file for bankruptcy or negotiate with your creditors to lower the amount.
Link to the original article: https://www.nerdwallet.com/blog/credit-card-debt/
