Credit card debt has become an increasingly troubling issue for many Americans. With inflation driving up the cost of consumer goods over the last few years, the reliance on plastic for everyday purchases has been growing and that has caused credit card debt to balloon nationwide. That’s not the only issue, either. Credit cards also come with some of the highest borrowing rates around, so if you’re carrying a balance, the interest costs can add up quickly, making it difficult to pay down your debt. 

That problem is even more pronounced today, as credit card interest rates are hovering at a record high of nearly 23%. That’s despite the Federal Reserve’s recent rate cut having a positive impact on other types of borrowing products. While mortgage and home equity loan rates fell after the Fed’s rate cut last month, credit card rates have stubbornly remained high, making it difficult for cardholders to make progress on their debt. And when you add in other economic pressures that are looming, it becomes even harder for those carrying balances to get ahead. 

So, if you’re struggling to make your credit card payments this October, you’re not alone. Many cardholders are facing similar issues, but missed payments still have serious ramifications, including damage to your credit score, late fees and higher interest charges. Before you let the situation spiral, though, you should know that there are several options available to help you avoid financial disaster. 

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What to do if you can’t pay your credit card bills this October

If you’re worried about missing your credit card payments this month, these options could be worth considering:

Work with your card issuer directly

One of the first steps you can take if you’re unable to make a payment is to contact your card issuer directly. Many card companies are willing to work with customers who are experiencing financial hardship. For example, they may offer temporary relief through a hardship program, which can involve reducing your interest rate, waiving fees or setting up a manageable payment plan. But it’s important to reach out as soon as you realize you can’t make the payment. Waiting until after you’ve missed one can make it harder to secure a favorable arrangement.

By enrolling in a hardship program through your card issuer, you may be able to pause or reduce your payments for a set period while keeping your account in good standing. This can prevent further damage to your credit score and help you get back on your feet. Just be sure to ask about all the terms of the agreement before committing so you fully understand any potential impacts on your credit or future account status.

Explore the debt relief programs available to you here.

Consider a debt relief program

If working directly with your card issuer won’t provide enough assistance, you might want to consider a debt relief program instead. Debt relief companies offer a variety of services, including debt consolidation programs. This type of program typically involves taking out a loan through the debt relief company’s third-party partner lender to pay off your credit card balances, leaving you with just one monthly payment at a lower interest rate.

Debt forgiveness programs can also be an option. These programs work by negotiating with your creditors to reduce the total amount you owe and enrolling in one could reduce your balance by 30% to 50% or more in some cases. However, this option can also have a significant impact on your credit score and you could owe taxes on the forgiven portion of your balance — so be sure to do your homework before enrolling. 

Seek help from a credit counseling agency

Working with a credit counseling agency might also be worth considering. Credit counseling agencies can provide free or low-cost advice on how to manage your debt and may offer debt management programs that you can enroll in, too.

When you enroll in a debt management program, the credit counseling agency works with your creditors to try and lower your interest rates and create a repayment plan that fits your budget. You’ll make one monthly payment to the agency, which will then distribute the funds to your creditors. This can simplify the repayment process and often results in lower interest charges and faster debt payoff.

Credit counseling agencies can also help you develop a long-term financial plan to avoid falling into the same cycle of debt in the future. Just be sure to choose a reputable agency that is accredited by a recognized organization to ensure you’re receiving reliable assistance.

The bottom line

Missing a credit card payment can be a significant financial setback, but it doesn’t have to lead to long-term consequences — and in many cases, you could have other options to consider before it happens. Whether you choose to work directly with your card issuer, enroll in a debt relief program, consolidate your debt or seek credit counseling, utilizing the help available to you could mean regaining control of your finances and getting things back on track. The key is to take action early and explore all your options to find the right one for you.