I can’t pay my Credit Card Bills
So you can’t pay your credit card bills. Firstly, you are not alone. Many people are struggling with credit card debt. There are many reasons why people find themselves in this situation. You may have lost your job and now you have less money at the end of the month to pay all your financial obligations. Or maybe you are still earning the same amount but you simply over extended yourself. Meaning, you spent too much on your credit card, without thinking if or how you will be able to pay it off at the end of the month. Maybe you had an unexpected emergency, like your car needed some work done to keep it on the road or you had some unexpected medical expenses. Quite frankly, there are a tonnes of reasons why people can’t pay their credit card bills. If you are seeking professional debt help, check out this organisation. They help people in debt like you every day.
What happens if I can’t pay my credit card bills?
What happens if you don’t pay your credit card bills will depend on how much you owe and how long your credit card bills are overdue. If your bills are only a couple of days overdue and you have an understanding lender, then you may still have time to fix things before your credit score gets damaged. They will probably call you to find out why you missed your payment and find out when you are going to make payment.
However if you are overdue by more than a month, the credit card company will become very serious about getting you to pay your credit card bill. If you are already at this stage you should seriously consider getting help now. You need to act quickly because debt builds up quickly.
If you don’t take action, you can expect to get a lot of text messages and emails demanding payment and asking you to contact their late payment department. They will also start phoning you on your mobile and home phone number. If you ignore these attempts to contact you, the credit card company may start calling you at your place of work. This can of course be embarrassing for you if your colleagues answer the phone. They may find out you are in debt and being chased by credit card companies. Maybe they overhear you dealing with the credit card company on the phone. This is something that really upsets people because they find it very embarrassing.
In an ideal situation, you will be able to explain to the credit card company why you are unable to pay off your credit card and come to an arrangement with them. If you are lucky, they may agree to you paying off your balance by instalment payments. Obviously you must not continue to use the credit card which would add to your debt.
Debt Collection agencies collecting credit card debt
The real problem arises if you cannot come to an arrangement with the credit card company. This would be a good time to get help from an experienced debt help organisation.
If you cannot come to an arrangement with your credit card company, your account may be handed over to debt collectors who will collect the debt “on behalf” of the credit card company. The important thing to note here is that in this situation, the collection agency will be working for the credit card company. The debt collectors will probably have guidelines on how to deal with you (debtors) to protect the reputation of the credit card company.
A worse scenario is when your credit card company sells your debt to a “debt buying and collection agency”. The problem in this situation is the debt collection agency has purchased your debt and is less concerned about the reputation of the credit card company because they do not work for them. They simply purchased your debt. The result is they are often more heavy handed in their collection techniques than a collection agency that is representing the credit card company.
Just like the credit card company, the debt collection agency will make attempts to contact you by text message, email, postal letters and telephone. However, the debt collectors will be less understanding and they will apply significant pressure upon you to pay.
You may also end up receiving the dreaded doorstep debt collector visit.
A doorstep visit is where the debt collection sends a field agent to your home to deal with you in person. They have even been known to visit people at work. This can of course be very embarrassing and rather intimidating. There are however rules and regulations regarding doorstep visits. The problem is, not everyone complies with the rules. If you are at this stage you really should get advice and assistance from experienced debt help specialists. They will be able to assist you in preventing doorstep visits.
The debt collectors may apply to the County Court for judgement (CCJ) against you. This can be a messy affair as you may be required to provide detailed, in depth information about your complete financial situation so the court can determine how much you should pay. If a CCJ is awarded, it will remain on your credit record for 6 years, even if you pay off the debt sooner. This will of course negatively impact the possibility of you obtaining credit in the future.
What you should do if you cannot pay your credit card bills
You have to decide if you are going to be able to sort this out on your own or would you be better off getting professional debt help.
If you are going to try to deal with your debt on your own, you have a lot of work to do. Firstly, you should take a moment to identify why you are in this situation. As with most “problems”, if you can find the cause of the problem, it is easier to find the solution. You need to do some calculations to see if you can make sufficient savings and cutbacks to catch up with your credit card payments as they currently stand. You can try to negotiate with your credit card company and other creditors for a lower monthly instalment. This can be hard for an individual to achieve because you will first have to deal with the customer service reps who may not be the decision makers. You could also try sending one or more of our debt help letter templates.
You could enlist the assistance of an experienced Debt Help Organisation who specialise in assisting people in your situation. This is a popular solution because a Debt Help Organisation is experienced in getting people out of debt. A good Debt Help Organisation will:
- Become the main point of contact regarding your debt so your creditors stop contacting you
- Negotiate a significantly reduced monthly repayment
- Negotiate that your interest rate be lowered or even frozen so no further interest is charged
- Negotiate a discount on the total amount you owe. In some cases people have had up to 83% of their debt written off.
- Manage the payment of your debts. So you would make one monthly payment to the debt help company and they would then divide your payment between your creditors.
- Provide you with general tips on getting out of debt
So as you can see, there are many reasons why people chose to get professional debt help. If you are interested in getting professional debt help then visit this link for one of the top debt help companies in the UK. Their service is completely online and confidential.
Credit cards and how they can affect your credit rating
Credit cards can actually improve your credit card rating. For example if you had never applied for and used credit facilities you would not have a credit history. So a lender would not know if you are a reliable borrower or not. By using a credit card and paying it off on time, you can actually demonstrate that you are a responsible borrower which will build up a positive credit score. Conversely, if you fail to make payments on time your credit card company will most likely report this to one or more of the credit bureau and your credit score will be negatively affected.
How quickly a credit card company will report your late or non-payment, will vary from company to company.
How to complain about your credit card company
Credit card companies have very strict rules and regulations. Recently the rules and regulations governing the credit industry have become even more stringent. If you feel you have been treated unfairly you should contact the credit card company. If they fail to resolve your complaint to your satisfaction you should contact the Financial Ombudsman. The Financial Ombudsman regulates the credit industry and they will be able to assist you from an unbiased and well informed point of view.
Who to turn to for help with your credit cards
If you have decided you do not want to take on the challenge of getting out of debt on your own, then get in contact with a professional debt help organisation. As mentioned there are many benefits of getting professional debt help.
There are many places to get professional debt help. We suggest this organisation. Just follow the link and fill in your contact details to get started. Who knows, maybe they can even write off a significant amount of your debt.
Whatever you do, take action now. If you wait, things will just get worse. Remember, you are not alone and you can get out of debt if you put your mind to it. It won’t be easy, so it is good to get assistance so you don’t have to walk this road alone.