Are You Struggling with Your Debt? Try Talking to Your Credit Card Company!

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.