Not able to pay credit card bill? Do these things

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Making your credit card payments on time and in full is a solid rule of thumb for keeping your credit history clean. However, as a result of covid-19, many people have lost their jobs and are being furloughed, putting them in a position where they are unable to make their credit card obligations.

While it’s tempting to only pay off the interest, leaving the entire payment unpaid can make matters considerably worse. The longer you go without paying your credit card bills, the more late fees and interest you accrue. When interest rates on credit cards are as high as 25% a year, it’s easy for debt to pile

If you’re in a tight spot, it’s preferable to take out a low-interest personal loan. Remember to make on-time monthly payments on your credit card bills to avoid interest charges. Here are a few easy ways to avoid getting into even more debt by not paying your credit card bills on time:

Limited repayment

If you’re unable to make a complete payback on your credit card debt, at least make a minimum payment. As a result, your credit score will remain stable. A low credit score will make it more difficult for you to get future loans.

Additional late payment costs will be charged if the minimum payback is not met. Talk to your bank about whether something can be worked out or if the due date may be delayed if you still find yourself unable to make the minimal amount. Banks are more than eager to lend you money if you’ve made on-time repayments in the past.

Transferring money from one account to another

To repay a large credit card balance, you may have to make monthly payments for several months. Transfer your credit card debt to a low-interest personal loan instead of allowing it to balloon into an excessive amount of debt. Even though you’ll still owe the money you borrowed, you’ll pay less in interest and have more time to repay the debt.

When you’re paying off your debt transfer, don’t use your credit card to make any additional purchases. First and foremost, pay off your existing debts before taking on any new ones.

Don’t use any new credit cards

However, you will only see results from the advice provided above if you follow through on the plan to pay off your existing obligations before taking on new ones. Debt repayment with a credit card necessitates self-discipline and determination to follow the plan through. The money you save by paying down your high-interest debt will allow you to save more for emergencies and long-term financial goals.