There are people who want to buy everything – Fendi handbags, the newest iPad computer, a silk shirt for the dog – without thinking if they can pay off the credit card.
These people will always have economic problems. But even the most responsible people can face financial difficulties for reasons they can not control, such as illness or absence from work. If you realize that you can not pay for everything, first cover the things you can lose if you do not pay them, like the mortgage and the car loan. If you can not pay your credit card after paying these bills, follow these steps to correct your situation and get back on the road to fiscal security.
Check your monthly expenses.
Make a list of everything you pay monthly. First, take a look at your expenses and divide the list into categories of what is necessary and what is not necessary. Although they may seem necessary, you can spend a while without things like satellite TV or cappuccino until your tax situation improves. You may lose a few chapters of your favorite series, but the reduction of stress will be worth it.
After considering the expenses that you can cut, look at what you need to pay. Add these expenses, which include the mortgage and food, to see how much you have to pay monthly. Compare your monthly salary to determine how much money you have left.
You already know your situation well and you can determine how much you can pay. If you can not pay the normal credit card payment, think about how much you can pay monthly. Make a conservative plan – of course you can pay more if you have enough money, but if you enter into a contract with your bank and do not keep your promises, that can damage your credit.
Call the bank.
Many people are afraid to call the bank if they can not pay, but it is much better to face the problem. Most banks will prefer to enter into agreements with their debtors and receive partial monthly payments, instead of receiving nothing. Plan in advance what you are going to say, take a deep breath, and grab the phone.
Explain the situation that has led you to have difficulty paying, for example, illness or lack of work. Tell them briefly, with sincerity, and without making excuses. Tell them how much you can pay monthly, and when you expect to pay the normal subscription. Promise not to use your card until you can pay the full payment. Ask them if they have special programs for clients with difficulties, or if they can help you by lowering the interest or eliminating surcharges for delinquent payment. Maybe they do not offer these options, but it’s worth asking. If you have always paid well in the past, mention this. You want them to know that you are a good customer facing problems, not a vulture who does not want to pay their debts.
Find ways to save money
Apart from cutting your expenses by eliminating unnecessary things, you can also pay less for the things you need. Look for coupons in the newspaper and on the Internet to save on food, and go to the supermarket on Sunday afternoons. On Sunday you can use the new coupons, and the afternoon is a good time to catch bargains among the fresh foods that have to be sold before the next day. Buy clothes in February and September, when the new designs come out and there are great deals on the clothes of the previous season. For example, Laura bought a cashmere sweater for $ 30 in February; the same sweater would have cost $ 120 in January. Carpool with your coworkers to save on gas. There are many ways to save money little by little, and stay with a lot more money at the end of the month.
You can save a lot by buying smartly. Also, if you have more than one credit card, consider moving the balances of the most expensive cards to the card with the lowest interest rate. That way you could pay just one installment, and save by paying less interest. But be careful– if you keep buying with the other cards, you will dig a hole from which you can not escape. And never get a loan on the capital of your house to pay credit cards. If you can not pay the loan, you will be homeless.
Look for opportunities to earn more
Just like paying less, earning more will help you pay more for your credit cards. If you have a job but you do not earn enough, look for the possibility of promotion. Explore job search services on the Internet. Some of them have the option to select what types of work you are looking for and receive an email daily that lists new jobs in those categories.
You can also work part-time to supplement your salary. For example, you can work in a bookstore on weekends, distribute newspapers or sell products like Avon or Pampered Chef. It’s hard to work that hard, but it’s good to give you temporary help while you get a better job.
Maintain communication with the bank
You have overcome the fear of talking to the bank, and you have an agreement to pay partial payments. You already need to maintain contact with them. If you can not pay on the date, call the bank before the payment date and explain the situation. It is very important to keep your promises or make a new agreement if something has happened to prevent it. If you break your agreement with the bank, they can charge you surcharges for delinquent payment, raise the interest rate, or send your account to collectors.
The essential thing is to know that you are not a bad person. You are going through a difficult time, but with intelligence, knowledge and perseverance, you can overcome your problems and return to a more tranquil life.