One of the newest trends taking over America is that fact that people are willing to make their credit card payments on time and reduce their outstanding debts. Is this a sign of Americans managing their wealth better by opting for saving money and avoiding use of credit cards for purchases?
To a certain extent, yes! However, despite a number of people making an effort to pay off their dues on time, there is still a majority that defaults on their payments, thus, increasing the number of write-offs. Due to various reasons, certain people are still unable to repay their dues to credit card lenders. With the unemployment rate still on the increase and some banks declaring people as defaulters for just skipping one payment, the list of defaulters does not seem to reduce any time soon.
Defaulting on your credit card payments can have serious repercussions that could torment you and your family for a long time. If you are finding it tough to make your payments on time, here are simple tips to help you avoid defaulting.
The first tip is to increase the amount of money you set aside for emergencies. You never know when problems can strike and when they do, you need to ensure you have enough funds not only to help you sail through the problems but also to help you continue making at least the minimum payments on your credit cards to avoid defaulting.
Your credit card company can also come to your rescue. Lenders nurture a dislike for consumers who do not keep them informed about delayed payments. However, if you reach out to your credit card lender and brief them about their predicament, you can surely arrive at a compromise. If you are unable to pay the amount due for that particular month, you can call them and negotiate for an amount that is within your reach. This will not only get you out of the defaulters list, but will also prevent overhead charges like late fees and other penalties from being levied on your account.
The final tip is to curtail usage of your credit card. When you know you will not be able to pay up the dues, it is unwise to continue accumulating them. This will only lead to an increase in the outstanding balance, in addition to various penalties for non-payment of existing dues.