Recent data from the Federal Reserve Bank of New York has revealed a concerning trend: A growing number of Americans are worried about missing their upcoming credit card payments. In September, the percentage of cardholders who said they were concerned about missing a minimum credit card payment over the next three months increased to 14.2% from 13.6% the month prior, marking the highest reading since April 2020. This uptick occurred at a time when there’s growing financial strain among cardholders due to record-high credit card rates and higher consumer goods costs after years of inflation.

The implications of missing credit card payments can be far-reaching and severe. Delinquent card payments can result in late fees, high penalty annual percentage rates (APRs) and significant credit score damage. A lower credit score can, in turn, affect your ability to secure loans, rent housing or even land certain jobs. Falling behind on payments can also quickly spiral into a cycle of debt that is increasingly difficult to escape.

Given the potential consequences, it’s crucial to take proactive steps if you’re concerned about missing a credit card payment. Acting swiftly could help you avoid the worst outcomes and give you more time to find solutions to the issue. 

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What to do if you’re worried about missing credit card payments

If you’re worried about missing a credit card payment, here are some steps that could be worth taking now:

Reach out to your card issuer as soon as possible

One of the most important things to do if you’re in danger of missing a payment is to contact your credit card issuer right away. Most issuers would rather work with you than let the debt fall into default, as negotiating with you increases the chances of the card issuer recovering the full amount owed. By being upfront about your financial situation, you may be able to negotiate a temporary solution, such as extending the due date, waiving late fees or even securing a reduced interest rate for a limited period.

Card issuers typically have customer service lines dedicated to these types of issues, and the sooner you make that call, the better your chances of finding a solution that works for both parties. Explain your situation, provide any necessary documentation and ask about your options. If you’ve been a long-time customer with a good payment history, they’re more likely to accommodate your needs.

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Inquire about hardship programs

If you’re facing ongoing financial challenges, like a job loss or medical issue, many credit card companies offer hardship programs designed to provide temporary relief. These programs typically offer reduced interest rates, lower monthly payments, or a suspension of fees for a limited period, usually three to six months. Enrollment in these programs is not guaranteed, however, and you may need to demonstrate that you’re experiencing financial hardship due to a job loss, medical issue or another unforeseen event.

If you can qualify, though, a hardship program could provide much-needed breathing room while you work to stabilize your finances. Just keep in mind that while you may get a break from interest and fees, your credit card company may still report your modified payment status to the credit bureaus, so it’s important to ask how participation in the program could affect your credit score.

Weigh your debt relief options

If you’re dealing with significant debt across multiple credit cards, exploring your debt relief options could help you manage your payments more effectively. The debt relief strategies available to you may include debt consolidation, where you combine multiple credit card balances into a single loan with a lower interest rate. This can make your monthly payments more manageable and help you avoid missing a payment in the first place.

There are also debt forgiveness programs that negotiate on your behalf with your creditors to lower the total amount you owe and could cut down your balance by 30% to 50% in some cases. However, debt forgiveness can negatively impact your credit score, so it’s important to weigh the pros and cons carefully before proceeding. 

Consider a debt management program

Another option is to seek out a debt management program through a nonprofit credit counseling agency. This type of program can help you consolidate your payments without the need for a new loan. With a debt management plan, a credit counselor works with your creditors to create a more affordable payment plan, often with reduced interest rates or waived fees.

With this type of program, you make one monthly payment to the credit counseling agency, which then disburses funds to your creditors. While enrolled, you may be required to close your credit card accounts, which could impact your credit score. However, the benefit of bringing your accounts current and paying down your debt over time may outweigh the short-term hit to your credit.

The bottom line

Missing a credit card payment can have serious consequences, but with proactive planning and the right steps, you can avoid long-term financial damage. Whether you’re reaching out to your card issuer, enrolling in a hardship program or exploring debt relief options, taking action now is key. By prioritizing your financial health today, you can build a more secure and stable future.