Can't make your monthly credit card payments. It is important to understand what you can do in order to avoid late charges, increased interest rates and avoid having your credit score lowered. Taking the appropriate action can increase your ability to make future payments.
Not being able to make your monthly credit card payments is a common occurrence and there are solutions out there than can help. Many circumstances can arise that can cause an unexpected large expense or temporarily loss an income source that will drain funds and limit ones ability to pay bills on time. If this does happen to you, the worst thing you can do is to ignore the issue when it arises. As soon as you know that payments won't be able to be made is the best time to start addressing the issue. Failing to address the issue right away can cause the following problems:
Increased future credit card interest rates
Late Fees
Get your credit score lowered by getting a late payment reported to the credit bureau
Decrease your future ability to make on time payments
A short list of steps that you can take in order to avoid these problems:
Call the customer service number for your credit card. Briefly explain your current situation and make them aware that it is not likely to happen again and tell them when you expect to be able to pay. If you have not done this in the past, it is very likely that they will give you an extension.
If you feel comfortable enough, you can always ask friends or family for the money. Like with the credit card company, explain to them your situation and that you don't expect this to happen again and give them a date when you expect to have the money to pay them back
Try to get a cash advance on your paycheck from your current employer. A lot of times employers will work with their employees to help them out.
If you have many bills that you cannot pay, see if there is one that can wait. Missing credit card payments most of the time have the worst penalties and can create the most problems in the future.
Obtain a Payday Loan. This option can only be good if cannot get an extension on your credit card payment. This will normally cost you about $75, however it can benefit you because you won't be paying the late fee on the credit amount and you will be able to maintain a good standing on your credit keeping your future interest payments down.
It is important to maintain a good standing with your creditors because this will save you thousands in the long run by maintaining a better credit score, keeping your interest rate down, and eliminating late fees. Don't delay on taking action, address the issues as soon as they arise.
If this seems to be a constant problem,
credit management/counseling could be a good option for you. With credit management you can get help planning a budget or help negotiate with current creditors about lowering rates or waiving late fees. It is important to take the necessary steps as soon as you realize there is a problem because this will save you thousands in the long run.
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Frequently Asked Questions
Hello David. Three years ago (in better economic ...
By: Deborah | 19-08-2008
Hello David. Three years ago (in better economic times), my son shopped around for the best mortgage deal before purchasing his condo. He first went to CountryWide Mtg. who ran his credit scores and approved him, but he thought he could get a better rate. He next went to a bank. The same scenario ensued. In the meantime, the local credit union was offering an enticing rate, so for the third time he went through the process. At this point the credit union informed him that since his credit scores had been pulled twice already that his scores were dropped substantially. He ended up paying points to get a reasonable rate. My question is, If banks and mortgage institutions have to run your numbers first in order to come up with a rate, how can they penalize you for it and shouldn't they be required to tell you beforehand that it will affect your score and hence, your rate? Thank you. Deborah
What lender offers ITIN loans
By: Jess | 18-08-2008
I am a mortgage broker. Does anyone know what lenders are currently offering ITIN loans.
Vacation Homes
By: Sandra | 16-08-2008
Who is the best source for getting a low fee and low down payment mortgage for a vacation home?
jgaylesan@aol.com
Asking for a discount rate
By: Steven S | 16-08-2008
Dave, My wife and I are purchasing a 2nd home and I was wondering since both my wife and myself have credit scores in the 800+ range, am I out of line thinking I should be able to ask my lender for a better rate on mortage interest (thinking about 1/2% to 1/4% discount). I will be using purchasing this home with a VA home loan.
Government grants for home owners
By: ebere | 15-08-2008
How can I apply for the money the congress passed to help people who are behind their mortgage payments and, who have the adjustable rate?
Upside Down with Three Mortgages
By: Dan | 15-08-2008
I have first, second and third mortgages on my home. The first and second are 30 year and the third is 15 year. My first is an ARM and the interest rates on the first and second are quite high. The third is only for $10,000 and has a low payment although the interest is high. The third puts me upside down on the value of my home versus its last appraisal. Is it possible to consolidate the first and second which is under the appraised value and leave the third complete out of the transaction?
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