Modifying Your Credit Card Payment Plan

If you experience significant issues in making credit card payments, understand that many credit card issuers have different policies that could help you. Different credit card groups have different ways of helping you with your credit card, but today we’ve provided some helpful hints on what you can accomplish, working with your credit card companies.

Many credit card billers will, for a time, provide you with a lower interest rate and zero late fees to help you return to controlling your credit card, letting a larger portion of payments apply towards the balance, with less toward interest. To let you avoid late fees, the credit card company will frequently mandate auto-pay through a checking or savings account.

Some credit card issues will let you get away with a lower minimum payment. On a modified credit card payment plan, you can pay a lower minimum with no worry of any extra fees or troublesome penalties. Some temporary payment changes like this are legitimate for six months, others for a full year or twelve months. If you do opt to go with this modified credit card payment option, they might demand that your payments are set up to be paid each month, through auto-pay, by way of your checking or savings accounts.

In certain instances, if you have a lot of credit card debt, you might just want to consider settling the debt for less money. Credit card companies frequently end up taking a payment that’s actually less than your actual balance, so you can close your account and pay it all off; this is typically only when the credit card issuer thinks you might end up filing bankruptcy. The reason they do this is, if you file bankruptcy, credit card companies won’t receive any payment, so something is better than nothing. For this option however, you’ll have to pay the amount right then and there. Because you will no longer be issuing payments to the credit card companies, you likely must pay the amount fully, in one lump sum, to close your troubled credit card once and for all. However, keep in mind that this method incurs a downer on your credit score frequently, but many credit card consumers discover that just lowering all their credit card debts aids in increasing their credit scores in the long-term.