During recessions and national pandemics, thousands of people lose their employment and that income. But, what can you do? Unemployment takes time to start coming and in the mean-time credit card companies want their payments and may threaten to close your credit card account.

Credit Card Account Help

Don’t let that happen. There are at least 9 ways to prevent that happening. Get credit and debt advice.

Why People Get and Use Credit Cards

It is tempting to increase your buying power and live a better life with a credit card. Some people get credit cards to expand their credit score. But the temptation to overspend with credit cards is always there. People get credit cards, for convenience in buying everyday items, to purchase large items, or to go on a vacation. Other people find it easier and more convenient to put everything on a credit card and then make one payment every month. But credit card balances can get out of hand. National Debt Relief has options to help those in debt.

How Did Finance Problems Develop?

People end up in debt because they spend too much money on their income and don’t make the payments on time. Others get into a bad debt situation because they or a family member have been ill and the medical bills were high. Other people lose their jobs and try to get by on credit while they look for a job. Some people work hard and just don’t make enough money to pay the bills. If these card debts are not paid, the credit card accounts can be closed but payments will still be due and the credit rating will plummet.

It is easy to want things and even easier to put them on a credit card to pay for later. But, the bills always come, and if they are not paid off, interest is charged along with late payment charges and the balance grows faster than the ability to pay. At some point, the person realizes they are in financial trouble with too many credit card payments and other bills looming. Their income is not enough. Help is needed to get out of this debt problem. Around 37% of Americans have bad credit that needs fixing.

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Consider These 9 Ways to Prevent Closure of Credit Card Accounts

Any strategy to pay off debt and improve one’s credit depends on a reduction in spending which is not easy. There are proven strategies for reducing credit card debt:

1. Making larger payments will reduce payments in the future and save on interest charges. This strategy depends on reducing the use of cards and limiting other spending. One way to increase the amount paid on cards is to pay two minimum amount payments a month. Make the first minimum payment near the beginning of the month, then the second payment two weeks later. This really helps reduce the interest paid and the time it takes to pay down the balance.

2. Make a serious effort at reducing credit card spending to help those payments lower the balance. Tighten your belt and eliminate unnecessary purchases and perhaps restaurant and bar visits.

3. Consider putting away all the credit cards and not using them for a period of time. It is important not to add to credit cards while trying to pay them down.

4. Call the credit card company and explain your problem and your wish to pay off the balance. Then, ask for a temporary reduction in the annual percentage rate or APR. This may take several tries.

5. If possible, get a new credit card with a low introductory interest rate and transfer your other card balance to it. There are cards with 0% introductory APR rates for a period of time. This only works if a person makes a real effort to pay down the balance during this time.

6. If there are multiple cards with large balances, things get more complicated. It is important to pay all the minimum payments on time, but make the largest payments to the cards with the highest interest rates. Another strategy is to pay the most on the card with the least balance to get it paid off and reduce the number of payments. Check each card balance and target the cards with the worst utilization rate to pay off first. That is the cards that have balances nearest the card limit.

7. If the payments are too large for the money coming in and a person is in real financial trouble, it is possible to call the credit card company and ask for a long-term payment plan that eliminates late fees, default, and extra interest. You will not be able to use that card while on these plans.

8. Improving a person’s credit score can lead to lower interest rates and lower payments. To improve that credit score, a person needs to get late payments down and pay off enough credit cards and other loans to make a difference.

9. People who are having trouble making multiple payments every month may benefit from debt consolidation. This can be done by working with a company that helps clients negotiate with creditors to make one lump sum every month, or by taking out a loan that allows everything to be paid off. To help, loan consolidation payments must be made on time every month and no new credit card debt purchases made.

The Bottom Line For Getting Those Balances Down

The bottom line for keeping those credit card accounts open and improving that credit score is to reduce spending. There are house payments or rent to make, electric and heating bills to pay, and car loans to honor. You can not stop paying for one thing to make the payments on another debt. The only way to pay all the bills each month is to spend less money and to try to find more money. Some people get a second part-time job to bring in more money.

If you have things like extra cars, boats, RVs, or off-road toys, seriously consider selling them and using the money to catch up payments. Have a huge yard sale and use all the money to pay down credit card balances. Tightening your belt for a while is the best strategy to reduce debt.

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