You Can’t Make Your Minimum Credit Card Payment

You are not able to make your monthly credit card payment because you’re going through a period of financial difficulty, or you’re simply overspent.

When you can’t make your monthly credit card payment, the absolute worst thing you can do is just let the bill go unpaid. Your creditor can charge you a late fee, raise your interest rate, and report the late payment to the credit bureaus.

Not only that, if any of your other creditors have a universal default clause in your card agreement, your interest rate on those credit cards will go up, too.

What should you do instead? Call your card issuer and explain the situation to them. Let them know it’s a one-time occurrence and let them know by when you’ll be able to make your next payment.

Most creditors will extend your due date, waive the late fee, and continue reporting a “current” payment status to credit bureaus.

Dealing with an unsympathetic creditor? Look for the money in other places in your budget. Is there something you can spend less on this month? Another bill that can wait? Perhaps you can borrow from a friend or family member or get a small advance from your employer on your next paycheck.

If you find that you’re consistently having trouble making your minimum payments, consider credit counseling. A credit counselor can help you figure out how to restructure your budget or negotiate lower monthly payments with your creditor.

Rather than forgoing your credit card payment, do what you can to keep your cost of credit low and preserve your current credit standing.