credit card


Sometimes life happens and you find yourself pouring over the bills wondering how it got this bad. Credit cards can be helpful in certain situations, you can pay back large purchases slowly or even sometimes get a percentage off. There is a downside to credit card use which can include large interest rates and delinquency.

How does credit card delinquency affect me?

When you are late on your credit card payments they are at risk of becoming delinquent, which can affect your credit score. After 30 days of non-payment many companies will try to reach out to you for payment options, once the account reaches 60 days past due your interest rates can get even higher.

These new rates are here to stay too and can take six months or more to go down after the past due balance has been paid.

You aren’t alone

If you think you are alone with your credit card debt issues think again. The credit card delinquency rate in 2018 is up from prior years indicating the issue is something many people deal with. Business Insider reports that the increase in delinquent accounts is at a rate which has not been seen since the financial crisis.

The increase in credit card delinquency shows there is a bigger economic issue on the horizon. If people do not have the money to pay their debts, it could pave the path to another financial crisis.

There is hope

Instead of being afraid of the phone every time it rings, talk to the credit card companies. They are pros when it comes to what you can do to better your situation and want to work with you to get your bills paid and up to date. They can help you establish a payment plan and get you back on track to an account in good standing.

Life is known to throw a curve ball or two so don’t be afraid to ask for help in order to overcome your debt.