What to Do If You Can’t Pay Your Credit Card Bills?

If you’re looking at your credit card statement and wondering how you’ll make your next payment, don’t panic. There are steps you can take to get back on track, protect your credit, and avoid getting deeper into debt. Let’s take a look at your options.

Contact your credit card issuer

The minimum payment is the smallest amount you can pay by the due date to keep your account in good standing and avoid any late or missed payment fees. However, if you’ve tried finding extra money but are still coming up short, contact your credit card issuer as soon as possible, before your payment is due.
Explain your situation to your bank or credit union and ask what options may be available, including whether they offer hardship programs. Many card issuers may allow you to defer or delay a payment, waive a late fee, or temporarily reduce your interest rate, especially if this is the first time you’ve had trouble paying and you contact them early.
If there’s a particular reason that you’re unable to pay this month, for example, you’ve lost your job or are facing unexpected medical bills or funeral expenses, be honest about this. Most importantly, don’t wait until your payment is overdue to reach out.

Review your income and expenses

It may be tough, but take a look at your monthly expenses to see if there’s anywhere you can cut back. Even a little extra could help cover at least the minimum payment due.
Whenever possible, try to pay in full by the due date to avoid paying interest. If you can’t pay the full amount, pay as much as you can, and always try to make at least the minimum payment by the due date.

Consider a balance transfer

If you have good credit, a balance transfer credit card may give you a short-term break from interest charges. These cards allow you to move high-interest debt to a new card with a 0% introductory APR for a set period, often 12 to 21 months. This can give you time to pay down your balance without adding more interest during the introductory period.
You’ll usually have to pay a balance transfer fee, typically 3% to 5% of the amount you transfer. It’s also a good idea to have a plan to pay off the balance before the introductory period ends. When the 0% introductory period ends, any remaining balance on your credit card begins to accrue interest at your card’s standard variable APR.

Look into a debt consolidation loan

Taking out a loan with a lower interest rate than your credit cards, consolidating your debt could make things a little easier. You can roll multiple credit card balances into one loan with a single monthly payment, which can simplify your payments and potentially lower your monthly costs by reducing the amount of interest you pay.
Debt consolidation loans tend to work best when you can get a competitive interest rate, ideally below 15%. The rate you qualify for will usually depend on your credit score and income. Before choosing a loan, compare rates from a few lenders and be sure to factor in any origination or other fees so you know what the loan will really cost.

Contact credit counseling

Consider reaching out to a nonprofit credit counseling organization through the National Foundation for Credit Counseling. A credit counselor can help you create a realistic plan for managing and paying down your debt.
A debt management plan can combine multiple debts like credit cards or unsecured personal loans into a structured repayment program with a lower, single monthly payment. This plan is based on your financial situation and is generally designed to help you pay off your debt within five years.
You’ll still have to make monthly payments to your credit counseling agency, which will then distribute the payments to the creditors on your behalf.