Avoid Credit Card Trouble Early

By: Nick Makaryk

Do you know what is happening to your credit score each time you miss a payment or forget to pay your credit card bill on time? Well, think about it. Each time you miss a payment or fail to pay on time, you are incurring late fees and accumulating interest on top of that. What also might happen, is that the interest rate may increase because of these actions, which means the amount you owe continues to grow at such a pace that eventually you might find that even the minimum payment is too much for you to handle. If this happens, essentially your credit score is out the window.

The best thing to do is take control right away. Even though it may not be easy and circumstance may try to prevent it, you should make sure you never miss a payment and your payments always arrive on time, before or on the due date. The following tips will provide you with guidance on making your credit card payments on time, every time.

Failure to pay bills on time means penalties, late fees, and added interest that you just do not need. It is important that you always try to pay the minimum if something has happened that prevents you from paying more. Paying the minimum means staying afloat and interest, but it is much better than not paying at all.

Check with your credit card company, find out if they offer an option called "skip a payment. Some companies provide this to their customers as a security net one time per year. This option gives you the opportunity to skip one payment in times of hardship. Because this service, if offered by your company, is generally only available one time per year, make sure that it is only used in situations where it is absolutely necessary. The service generally does not come free, so be sure you need to use it before you choose to apply for the waiver.

Credit cards make our lives easier and safer for the most part. It prevents us from having to carry cash with us and helps us when we do not have cash on us. However, many people choose to use their credit cards for items, even when they know they will not be able to afford the payments. Once the bill arrives, they find they regret their decision, but still do not have the ability to make the payment.

The best thing to do to avoid this situation is to use your credit cards wisely. Refrain from making any purchases that you know you will not be able to pay. Think about each purchase, consider rather you will have the ability to pay off the bill when it arrives. Doing so will ensure that you keep your credit score in top notch condition, keep yourself in good standing with the creditors, and open doors for you in the future.

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