What Happens When I Miss A Credit Card Payment?
All it takes is one medical emergency or one unforeseen event, and you may find yourself facing overwhelming debt. A job loss, a car accident—the list of things that may come up and, in turn, have you struggling so you don’t miss a credit card payment is endless. It’s bad enough that a missed credit card payment may affect your credit score. When you miss a credit card payment, you may accrue late fees and increased interest too. You may end up in a vicious cycle that feels hopeless.
Missed Credit Card Payments: More Common Than You May Think
According to a recent survey done by WalletHub, the average American household credit card balance is nearly $9,000. The study also found that nearly 20% of Americans believe that they’ll miss at least one credit card payment this year. That means that almost 46 million people in the United States will miss at least one credit card payment.
If you’re struggling to make your monthly credit card payments, you’re not alone. But, it’s important that you know the impact when you miss a payment on your credit card balance. Thankfully, there are options to help put you back on the path to financial freedom.
When You Miss A Credit Card Payment: The Hole Gets Deeper
When you miss a credit card payment, there are definite consequences. Typically, a credit card payment is considered late if it’s past due by 30 days or more. If you’re within 29 days of the due date, you most likely will not see a credit report change. You will, however, get reminded by your credit card company that you are late and payment is due. When you have several creditors and you miss a payment, those calls and letters can be overwhelming.
Late Fees From Missed Credit Card Payments
Credit score aside, the vicious cycle of late payments happens 30 days or more after you miss a credit card payment. This is when your credit card companies may start issuing late fees. These fees can be hefty, and more, they can be accompanied by changes in your interest rates. When you are already struggling with making a minimum payment, additional charges and higher interest rates may feel like adding insult to injury. They add more debt to an amount you’re already feeling crushed by and can make you feel like you’re never going to get out of debt. This could leave you with late payment fees close to $40 and interest rates jumping up to as high as 29.99%! Even if you could make the minimum payment, you’d barely be making a dent in the total balance.
If you continue to miss your payments, your creditors might continue to aggressively pursue the balance on your accounts. Your credit score will continue to drop, the interest and late fees may continue to increase your balance owed, and you’ll be pressured regularly to pay. There are state laws that can protect you to a degree. But, the reality is that your creditors are owed that money and they can do whatever they can to the fullest extent of the law to get it.
You don’t have to let this stress you out, though. You have debt relief options that can bring you financial peace and put you back on the road to financial independence.
Debt Settlement Makes A Difference
At UmbrellaDEBT Relief, we know the stress that comes when you miss a credit card payment leaves you feeling worried and hopeless. We offer successful debt relief options like debt settlement that may help take that worry away and give you hope.
Our experienced debt specialists will assess your financial situation and explain the methods available to reduce the overall balances you have with your credit card companies. You can pay off your debt faster, without worrying about the interest rates changing or late fees accruing. Debt settlement is typically the most affordable debt relief option you have. UmbrellaDEBT specialists will work to settle on the best financial options for you.
At UmbrellaDEBT Relief, we focus on eliminating your debt and helping you to live a debt-free life. If you’re worried about how you’re going to make your credit card or other unsecured debt payments, contact us today. You’re just a few steps away from getting out of debt and moving toward financial independence again.