With the recent downswing in our economy, many people are losing their jobs and finding it hard to pay their bills.
Many times people are not prepared with an eight to twelve month emergency fund to get them through the tough times.
Those who fall into that category usually cut back on extra spending like going out to dinner or buying things that aren't "needs".
That may be fine for a while but what happens when it goes on too long? You may find it hard to keep up with your monthly credit card payments.
One thing that you can do is call the issuer of your credit card(s).
Everyone knows that the economy is bad, especially big financial corporations but they need to pay their obligations just like you.
If you don't pay your monthly statements and keep the account in good standing, it will ruin your credit score.
In most cases they will be willing to work with you.
Call your credit card company and they may lower your monthly minimum payment or if your issuer offers some insurance, you may be able to have 6-12 months of holding off payments.
Of course be aware that they will still be adding interest on the principal amount.
What you may not realize that some issuers lately are taking part in a practice of convincing people to use the person's home as collateral against their unsecured credit card.
Credit cards are considered unsecured debt.
You don't need to put up anything of value against credit card debt.
If you ever fall behind financially, don't ever think that the bank is looking out for your best interest.
They know that you could and may claim bankruptcy.
As unsecured debt, you are not obligated to pay it back in bankruptcy court, but if they convince you to change it to some sort of home owner loan, you could lose your house.
Don't ever accept a credit card that will expect some sort of collateral, even those that want you to put $200 into an account just to get a $200 credit line on the card.
Many times people are not prepared with an eight to twelve month emergency fund to get them through the tough times.
Those who fall into that category usually cut back on extra spending like going out to dinner or buying things that aren't "needs".
That may be fine for a while but what happens when it goes on too long? You may find it hard to keep up with your monthly credit card payments.
One thing that you can do is call the issuer of your credit card(s).
Everyone knows that the economy is bad, especially big financial corporations but they need to pay their obligations just like you.
If you don't pay your monthly statements and keep the account in good standing, it will ruin your credit score.
In most cases they will be willing to work with you.
Call your credit card company and they may lower your monthly minimum payment or if your issuer offers some insurance, you may be able to have 6-12 months of holding off payments.
Of course be aware that they will still be adding interest on the principal amount.
What you may not realize that some issuers lately are taking part in a practice of convincing people to use the person's home as collateral against their unsecured credit card.
Credit cards are considered unsecured debt.
You don't need to put up anything of value against credit card debt.
If you ever fall behind financially, don't ever think that the bank is looking out for your best interest.
They know that you could and may claim bankruptcy.
As unsecured debt, you are not obligated to pay it back in bankruptcy court, but if they convince you to change it to some sort of home owner loan, you could lose your house.
Don't ever accept a credit card that will expect some sort of collateral, even those that want you to put $200 into an account just to get a $200 credit line on the card.