How to Deal With Past Due Credit Cards

Past-due credit card bills have a negative effect on your credit score. Avoiding the bills only hurts your credit and makes it harder to repay the debt later on. Avoiding the bills can cause debt collectors to contact you. Some credit card companies also increase your payment amount if you do not pay on time. If the bills sit unpaid for too long, it brings down your credit score. A lower credit scores makes it harder or impossible to get a bank loan for a house or car.

Things You'll Need

• Credit card statements
• Other bills
• Pencil
• Lined paper
• Checkbook or bank statement with current available funds
• Calculator
• Phone

Instructions

1. Draw three vertical lines down your paper to make three columns. At the top of the first column, write "Name and Amount." At the top of the middle column, write "Minimum Payment." At the top of the third column, write "Due date."

2. Look at your statements and record the data into your chart. Skip a line between each credit card to keep the paper neat and easy to read.

3. Look at your bank statement or checkbook to see how much money you have. Calculate how much of that you need to go to other bills and necessary expenses before the next payday.

4. Pay a bill with any extra money you have.

5. Use the phone and call the credit card companies to talk to them about the late payments. Whether a credit card company will work with you or not depends on the company and your credit history and balance. Some companies will rearrange your payment plan or lower payments.

6. Cut out unnecessary purchases to save money to pay off past-due credit card bills.

Tips & Warnings

• Do not pay off one past-due bill with another credit card. It only puts you more in debt.

References

• What Do I Do Know: How to Deal with Creditors on Past Due Accounts?
• Credit Cards: Consumer credit woes mean boom in debt collection