Actions To Take When You Can't Make Your Credit Card Bill

By: Michael D. Strauss

Millions of people worldwide are carrying levels of personal debt which are at best uncomfortable and costly, and at worst downright dangerous. Alongside the fabled sub-prime mortgage fiasco, credit cards account for a large part of this problem debt.

As the recession begins to bite in earnest, increasing numbers of people are finding that they simply can't make their credit card repayments, and are getting into arrears. What should you do if you find yourself in this unenviable position?

The first thing to do is to stay calm. However bad your situation may seem to you, your credit card issuer will not have the same emotional reaction to your debt and so will probably be more sympathetic to your plight than you may imagine. Consider how much you owe them, and then consider the untold billions of dollars which banks all over the world are losing at the moment - suddenly, your own debt doesn't seem to be on such a large scale. Certainly, the card issuers will do all they can to recover what you owe, but set in a wider context the money you owe is insignificant.

This doesn't mean that you can just ignore the problem though - you need to contact your card issuer as soon as possible to explain that you're having serious difficulties in meeting your obligations. Always do this by letter, for two reasons.

Firstly, if you need it, you have a complete record of your dealings which you can call on, for example, if your debt ends up being subject to court action.

Secondly, and more immediately, it's easier to keep your cool when sitting at your word processing software than it is when talking on the phone. The credit card's collection department staff will usually try to extract as much as possible from you without regard to how much you can actually afford - this is easier to resist when all your dealings are by writing.

As well as telling your card issuer that you're not going to be able to pay your bill, ask them to stop charing interest and to freeze and penalty charges. There's no guarantee that they'll agree to this, but there's a fair chance they will, and this will at a stroke simplify your situation and stop it from spiralling out of control.

Make an offer of repayment at a level you can afford, even if this figure is way below the minimum payment required on your bill. Doing this will show that you're trying to address your problems, which will count in your favour if it comes down to further recovery action being taken.

Finally, consult with a debt advisor or charity who will be well versed in this kind of financial problem, and will be able to offer you a personalized level of advice pertinent to your own individual circumstances.

Article Source: http://www.newarticledaily.com

Michael writes for credit cards site Card Sense, where you can read more about what to do if you have credit card arrears you can't meet.

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