How a Call Can Solve Your Financial Problems from Credit Card Bills to Unpaid Debt

Business & Finance By Ami Ciccone May 8, 2020

It’s a fact of life. Debt and bills don’t just fade away even when one goes through financial troubles or the loss of their income.

This unwanted scenario has become a reality for many people who lost their job or suffered losses due to the effects of the coronavirus on the economy. But it doesn’t mean that one should just accept their unlucky hand.

Here’s one relatively simple way people can alleviate some of their financial woes.

Reaching Out

Those whose finances have been flipped upside down are advised to find ways to ease their situation immediately

As some experts recommend, it would be wise to give one’s bank or credit provider a call if they’re struggling to pay their credit card bills. One report from LendingTree shows encouraging results as consumers who reached out to their card issuer have mostly gotten positive responses.

The online lending marketplace’s survey also found that some of those who asked for a reprieve was even successful in getting a break on more than one card. What more, there are also banks that are giving their clients options to help ease their financial burden.
Some of the ways these institutions are doing so are through lower interest rates or minimum payments as well as the waiving of late fees.

Avoiding Credit Score Hits

A blow on one’s credit score might be something they will deal with for years

People shouldn’t stop speaking with their credit provider after securing favors though. For example, one should also inquire whether they still report late payments to credit companies despite letting clients skip payments with no penalties.

If they do, this might mean a blow to an individual’s credit score. There are scenarios when a person’s score can be brought down by as much as 70 points because of a bad report.

That said, it would be helpful if people get something in writing when they agree on certain conditions with their credit provider.

Widespread Debt Problem

The Federal Reserve reports that people shoulder a whopping $1 trillion in credit card debt

This current problem is indicative of just how credit card debt has become a burden for consumers. Individuals who carry balances on a monthly basis reportedly owe an average of $7,100.

But that isn’t the only debt people have. They also have mortgages and student loans to keep in mind amidst job uncertainty or unemployment.

The good news is that repayments on these loans have been put on hold. Interest will still continue to accrue though and reprieves won’t let people off the hook for what they owe.