What Do I Do If I Don't Have the Money to Pay My Credit Card Bill This Month?
Realizing that you cannot pay your credit card bill can be a frightening thing, but ignoring the bill can turn a bad situation worse. If you can't pay your credit card bill, don't wait to try to come up with the cash. Instead, head the situation off by discussing your difficulty with the credit card issuer, and working with the issuer to make other payment arrangements.
Other People Are Reading
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Fair Warning
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As soon as you know you are not going to be able to pay your credit card bill, let the card issuer know. Dealing with the situation proactively can save your credit score. The sooner you contact the card issuer, the better your chances of working on a plan with the card issuer that can prevent a "past-due" from appearing on your credit report.
Your Situation
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When you contact the credit card issuer, give details about your situation -- whether you've lost your job, have had medical problems that have prevented you from working, or other problems that have resulted in an income shortfall. Be willing to provide documentation if necessary, in the form of unemployment benefits paperwork, statements from doctors, or whatever else you can produce to prove to your creditors that your financial situation has taken a downhill turn.
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Make an Offer
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Be willing to pay something toward your bill -- regardless of how small the amount -- it will keep you in the card issuer's good graces. Credit card issuers believe that "it's better, after all, to receive some money than to spend time and energy fighting with customers who simply cannot pay their bills in full," says MSN Money's Catherine Holahan. Offering some payment shows a good faith effort on your part not to simply walk away from your debt.
Modification
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If the situation that has prevented you from making your credit card payment in a particular month will also prevent you from paying in full for a few months, ask for a modification of your minimum payment. There will likely be a positive outcome.
"Companies...are agreeing to reduce monthly payments and interest rates for clients who are facing financial difficulties or have sustained blows to their incomes," Holahan explains.
Considerations
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If you have multiple credit card bills that you are unable to pay, it may be time to consider credit counseling. Dealing with one credit card issuer may be possible, but you may be overwhelmed by trying to work out arrangements with several. A reputable, Better Business Bureau-listed non-profit credit counseling service can help you negotiate with your creditors and improve your likelihood of paying your debt without destroying your credit.
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- Photo Credit credit card and dollars image by Pavel Bernshtam from Fotolia.com
