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Step 1
With the troubled economy and the percentage of layoffs is continuing to rise, it is very easy for a consumer to have difficulty meeting the monthly bills. Aside from Defaulted Mortgages, many consumers are having difficulty in making their monthly credit card payments. Credit is a "valuable" and necessary asset to consumers. There are ways in which you can protect your credit rating.
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Step 2
If you are behind in credit card payments, call the creditor, explain your situatiion and try to work out an acceptable payment plan. Some creditors will not report your account as being late to the Credit Bureau if you stick to your payment plan. Creditors should be willing to work with consumers to bring their accounts to a current status. Think of it like this, what have they got to lose. By refusing to work out an acceptable payment plan, a creditor could drive the consumer in to bankruptcy and they will never recover one dime.
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Step 3
Once you have contacted your creditors, it is wise to follow up with each of them by mailing a letter of confirmation. In most cases, calling the creditor doesn't preserve the rights of the consumer. Creditors need something in writing from the consumer for their files. You may even try to negotiate a lower interest rate and removal of any late fees associated with the account. You may be surprised how flexible some creditors will be. If you are able to keep your payment/ re payment plan, you should have no problem and your credit rating will not be effected. What most consumers don't know is that creditors will not report one late payment to the major credit bureaus. If a consumer misses two consecutive payments with no attempt to make payment, the creditor will report the account as being 30 days late.
