If you’ve fallen behind on your credit card payments, you’re not alone. Even if the minimums are somewhat low, having multiple accounts with bills coming in month after month can eventually be overwhelming. You may miss a few bills here and there, and then before you know it, the costs have added up and you’re months behind. Here are some ideas for handling accumulated credit card payments before your accounts go into collections:
Talk to your creditors
There’s a good chance your phone is ringing off the hook if you’ve fallen behind on your credit card payments. But don’t ignore your creditors. This often sends the message that you know you’re behind on payments and likely have no intentions of paying. Instead, talk to them and explain your situation; it may work better in your favor if you actually call them to explain what happened. For example, if you’ve fallen behind on your credit card payments because you lost your job, tell your lenders. They might be willing to lower your interest rate, lower your minimum payments, or both. In some scenarios, they may let you skip your minimum payments for a couple months. If it’s gotten to the point where they are just trying to settle your account, they might be willing to do so for just a small portion of what you owe. Lenders often understand that financial hardships are a reality, and many will be willing to work with consumers to some extent.
Re-do your budget
It can be difficult to figure out where your money is going each month, so if you’ve been falling behind on credit card payments, it might be time to re-examine your budget. When you take a close look at all of your bills, expenses, and spending habits, it can be easier to find areas in which you can cut down in order to meet your financial obligations.
Take on a second job
If you need extra money to keep up with your credit card payments, you might need to take on a second job. If you don’t have the time for a second job or you’re already working two jobs, there are some other easy ways to make extra cash. Some of these things include selling things online and secret shopping. Every little bit helps and it all adds up, which could make it much easier to take care of the credit card bills that have been piling up.
Transfer your balances
Apply for a credit card that has a 0% introductory offer and transfer the balances from your other cards onto that one. By only having one payment to worry about, and one that temporarily doesn’t impose interest fees, it can be a lot easier to manage your credit card debt.
Contact Peachtree Financial Solutions
If you’ve been contemplating bankruptcy as a last resort because of the amount of debt you’re in, you have other options as a payment stream recipient. One of the easiest ways to get extra cash and pay off your credit card bills is to contact Peachtree Financial Solutions. If you’re receiving structured settlement payments or annuity payments, you can sell some or all of them and receive a lump sum of cash. The lump sum of cash that you receive from Peachtree Financial Solutions can be used to catch up on credit card payments and potentially save your credit, help you avoid bankruptcy or foreclosure, and can protect you from judgments and wage garnishment. Contact us today to learn more and for your free quote.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.