Did you know that between 2015 and 2017, overall credit card debt in America increased by 13%? During this time, people with low credit score saw a 22% increase in their debt. As you can see, being overwhelmed with credit card debt isn’t uncommon.
If you have lost your job or have to deal with a medical emergency, you need to contact your credit card company as soon as possible if you think you will miss a payment. Most credit card companies are willing to work with a customer to help them come up with a repayment plan that suits their current situation.
If you miss a payment or make a late payment, you will be considered delinquent and your credit report will take a hit. Some delinquencies can stay on your credit report for up to seven years. If you miss too many payments, you can end up facing a debt collection lawsuit.
Credit card companies use the following factors to determine the terms of your repayment plans:
- All of your sources of income
- How much you can afford to pay
- Your total amount of debt
Some credit card companies also offer forbearance or hardship programs, which will allow you to postpone a set number of monthly payments or pay a lower monthly payment at a reduced interest rate until your debt is paid off. In some cases, you might be able to negotiate your overall debt to a lower amount.
Are you struggling with credit card debt? Give us a call at (312) 313-1613 to schedule your free case evaluation with one of our creditor harassment lawyers today.