Missing Credit Card Payments
Ever missed a credit card payment?
WalletHub reports that average household credit card balances top $8,000. Many can’t keep up with their payments. In 2020 we saw a big credit-card payoff primarily due to stimulus checks. However, in 2021, debt rose along with missed payments. A WalletHub survey revealed that 16% of respondents expect to miss at least one due date on debt this year. That’s nearly 42 million Americans. You know why? They forget, don’t have the money, no late fees on the card, are too busy, or Covid or traveling. The survey showed that people worry most about missing their credit card bill, then mortgage, tax, electricity, and car. The problem with missing a payment is the ripple effect. Late fees, penalties, and interest payments can significantly increase the total debt. When reported to credit bureaus, it damages a credit score leading to higher costs and impacts future borrowing.
The survey wasn’t all bad news. 9 out of 10 people were able to get a late fee waived. The key is being polite when asking, then being diligent in making the rest of your payments. Don’t expect them to forgive you more than once if you don’t have a steady payment history. When you use a credit card you commit to pay the balance. Think about that the next time you order pizza, new shoes, or airplane tickets. To become debt free, it may be necessary to stop using your credit cards all together. Determine your priorities and stick to them.
And if you’ve been blessed with My MoneyLife, I invite you to discover the Crown Stewardship Podcasts. They focus on helping you find freedom in your finances and career. You can subscribe on Spotify and iTunes, or listen at Crown.org.