When you receive your credit card statement in the mail or in your inbox, there are a few details that will immediately catch your attention. For some people, their eyes immediately search for the minimum monthly payment.
As the name suggests, this is the minimum payment you must make to keep your account current.
Even though the minimum monthly payment is less than your total balance, it doesn’t mean that you’ll have enough funds to comfortably pay it. In fact, there may come a point when you realize that you can’t make your minimum monthly payment.
Should you find yourself in this position, here are three basic steps to take:
1. Contact Your Credit Card Company
This is the first step you should take, as your credit card company may be more sympathetic to your situation than you expect.
Tell them that you can’t afford to make your minimum monthly payment and ask if there’s anything they can do to help.
You may have to speak with several people to figure out your options, but you’ll eventually find yourself on the right track.
2. Search Out the Funds
If at all possible, search out the funds that you need to make the minimum payment. This is particularly important if your credit card company tells you there is nothing they can do to help.
The good thing about this is that the minimum payment isn’t likely to be a large number. You may be able to find the money somewhere, such as by cutting back on another monthly expense.
3. Consider a Balance Transfer or Loan
The more trouble you find yourself in regarding credit card debt, the more important it is to look into this option.
With a balance transfer credit card, you can consolidate all of your balances under one roof. This saves you money on interest, while also making it easier to manage.
Another option is a personal loan. This is another way to consolidate credit card debt. You can add other forms of debt to the loan, too.
You don’t expect to run into this situation, but there may come a point when you realize that you can’t make your minimum monthly credit card payment.
As frustrating as it may be, it’s not the end of the world. You’re in a tight financial spot, but there are strategies you can employ to get back on track.
It’s best to contact your credit card company as soon as you realize you’re in trouble. This gives you the chance to avoid a negative action against your credit report.