无法支付信用卡账单？5 种行之有效、值得信赖的补救方法

The best strategy to prevent incurring interest and penalties is to pay your credit card bills in full and on time each month. However, unforeseen expenses arise during emergencies, and we fail to make credit card payments. Sometimes we forget to pay credit card bills because we are too busy.

Don’t panic if you can’t pay your credit card bills like many others. This can be handled before it becomes a worst-case situation, just like anything else in life.

What should you do when you can't pay your credit card bills?

信用卡账单

1. Pay the minimum amount – Even though paying your bill in full is ideal, making the minimum payment is also acceptable. Most credit cards demand fees of 1% to 3% of the outstanding balance, frequently with a flat-rate minimum of $25 for minor expenditures.

Although paying 3 percent might not seem like much, it makes a huge difference. You won’t be charged a late fee, but you will still have to pay interest on your unpaid balance. A penalty APR, which occurs when the card issuer raises your interest rate, can also be avoided with this strategy. Making the bare minimum payments also prevents damage to your credit score, which is heavily influenced by your payment history.

2. Call your credit card company – You can call the credit card company and request a one-time late charge waiver if you have a record of making on-time payments and anticipate that your financial situation will improve soon. Many customer care officials are equipped to assist with brief, one-time inquiries.

On the other hand, if you anticipate ongoing problems, you might need to inquire about enrolling in a hardship program. With a credit card hardship program, you can continuously negotiate with the card issuer to lower your interest rate or waive fees until you can resume your normal financial activities. That can significantly assist you, but there are costs involved. They could lower your credit limit or completely freeze your account in exchange for helping you.

3. Consolidate your credit card bills – A credit card with a 0% introductory APR might be helpful if you need more time to pay your credit card bills. These cards allow you time to clear your outstanding balance because interest is not charged for 12 months or longer.

Cards with 0% APR might take two forms: some focus on balance transfers while others offer an interest-free period for brand-new purchases. A balance transfer is effectively paying off one credit card with another. Most credit cards charge a fee for this, around 3-5 percent, but doing so could prevent you from paying 20 percent interest for a whole year.

It’s crucial to keep in mind that if you haven’t paid off the balance by the end of your 0 percent APR period, interest will start to accrue, necessitating monthly payments. Instead of continuing the loop by assuming you’ll figure it out in the future, include these payments in your budget.If your credit score is not high, you may not qualify for a 0% APR balance transfer credit card. You may enroll in debt consolidation programs to consolidate credit card debt at a low-interest rate. These programs allow you to pay what you can afford through a single monthly payment plan. Read the online reviews and check the fee structure before enrolling.

4. Settle your credit card bills – This option works best when you have missed payments on your credit cards for several months.

Debt settlement helps you resolve debt by paying less than what you owe. This program involves giving a creditor a one-time payment for partial debt forgiveness.

Usually, a creditor will accept 40% to 50% of the outstanding debt. However, it may be as high as 80%, depending on whether you work with the original creditor or a debt collection agency. In either scenario, your initial lump sum offer should be considerably below the 40 to 50 percent level to initiate the negotiation process.

5. Use the debt snowball method – Simply explained, the “snowball strategy” entails paying down the lowest of all your debts as soon as possible. After that debt has been paid in full, you transfer the funds you were using to make that payment to the subsequent smallest debt. This procedure would go on until all accounts were settled. The amount “snowballs” and increases as you move from the card with the lowest balance to the one with the highest and the rate at which the debt is being paid off is sped up.

Don't forget the tax consequences

You may face tax consequences if you have missed payments and settled credit card debt. When you save above $600 through a debt settlement agreement, you will receive a 1099C form from credit card companies. You must pay the IRS an income tax in the current financial year.

Keeping up with your credit card bills

There is no doubt that you are in financial trouble when you can’t pay credit card bills. Your financial health is not okay. Double-check your budget to know where you are going wrong. Identify the areas where you are spending your money unnecessarily. Reduce your frivolous expenses and embrace a frugal lifestyle. Save as much as you can to pay off your credit card bills. You must make payments even if you settle or consolidate credit card debt. You need money for it. So, the more you save, the sooner you’ll get out of debt.

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