Credit card debt is one of the most common ways people get into financial difficulty, and it comes with one of the highest interest rates. Often, people come to rely on their credit cards during a tough financial time, or a financial emergency, and then find themselves making only minimum payments while interest charges add up. Sometimes, people even find themselves missing payments altogether.
If you do miss minimum credit card payments, here’s what typically happens:
- If you miss one payment, but have a good borrowing history, your creditors may simply send you a polite reminder letter
- Miss two payments, and you’ll get a strongly-worded letter and possibly a phone call demanding payment
- Miss three payments, and your creditor will enlist a collection agency to press you for payment. Collection agencies can make your life unpleasant, using a variety of tactics to get the money, including threats
- If you still don’t pay, court action can be used against you
There are many ways to address your credit card debt problems. Depending on your situation, you could tackle the challenge yourself by putting together a repayment plan. But if you feel overwhelmed, professional help might be necessary.
To learn about all your options for getting out of credit card debt, meet a Grant Thornton debt professional nearby for a free, no-obligation chat, over the phone or in person.