What Should I Do If I’m Behind On Credit Card Payments?

According to a recent study by the Federal Reserve, total credit card debt in the United States has reached $1.12 trillion. A separate study by Transunion reports an average balance of $6,218 of credit card debt per individual, up 8.5% year-over-year. Furthermore, the Federal Reserve study found that nearly 9% of credit card balances transitioned into delinquency, an increase from the previous year. 

Falling behind on credit card payments can be an overwhelming and stressful experience for anyone. Still, there are steps you can take to address the situation and regain control of your finances. This blog post will explore what you can do in this situation.

If you’re behind on credit card payments, the first step is to assess your current financial situation. Take stock of your income, expenses, and outstanding debts to understand the full scope of your financial obligations. It’s crucial to be proactive in recognizing and understanding  the issue as soon as possible to avoid further financial repercussions.

Next, reach out to your credit card issuer to explain your situation. Many credit card companies offer hardship programs or alternative payment arrangements for individuals facing financial difficulties. By communicating openly and honestly with your issuer, you may be able to negotiate a modified payment plan or explore other options to help alleviate the burden of your credit card debt.

In addition to working with your credit card issuer, consider seeking assistance from a reputable credit counseling agency. These organizations can provide:

  • Valuable guidance and support.
  • Strategies for managing debt.
  • Help to improve your overall financial literacy.

By enlisting the help of a credit counselor, you gain access to resources and expertise that may help you navigate this challenging time.

Consider exploring options for debt consolidation. Debt consolidation involves combining multiple debts into a single loan with more favorable terms if you qualify for them. Lowering your interest rate through consolidating your debts can reduce the total cost and simplify your repayment process. Similar to debt settlement, you’ll have one monthly payment to manage. It’s important to carefully evaluate the terms and implications of any consolidation offer before proceeding.

Debt settlement is another option to consider when dealing with credit card debt. Unlike credit counseling or debt consolidation, debt settlement programs involve an expert third party negotiating with your creditors on your behalf to settle debts for less than the full amount owed. This approach can offer a faster path towards managing and reducing your credit card debt. However, it’s essential to carefully weigh the potential benefits and drawbacks of debt settlement. and cConsider consulting with a debt specialist to ensure it’s the right option for your specific situation.

As you explore your alternatives, it’s still also crucial to prioritize your payments and continue to focus on your most pressing financial obligations. While making timely payments on your credit card debt is important, ensuring that essentials such as housing, utilities, and other critical expenses are covered should take priority. By allocating your resources strategically, you can work towards regaining financial stability while still managing your credit card debt.

In conclusion, falling behind on credit card payments is a common financial challenge that many individuals face. By taking proactive steps, seeking assistance from credit card issuers and reputable organizations, and exploring options such as debt settlement and debt consolidation, you can work towards addressing your credit card debt and regaining financial stability.

Remember, addressing financial difficulties takes time and commitment, but with the right approach and support, it is possible to overcome this obstacle and move towards a more secure financial future. If you find yourself struggling with credit card debt, ACCS can help. Request a Custom Debt Relief Plan today. 

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