American credit card holders have a total debt of $1.211 trillion—$45 billion more than the previous quarter. With high credit card interest rates and high inflation, you might feel the pinch in your wallet, especially when your monthly credit card bill comes calling.
If you’re finding it challenging to pay your monthly credit card bill bill, here are steps you can take to help ease the financial burden.
Create a budget
To understand your finances, add up everything you make each month and all your household expenses. This allows you to see what you actually have leftover to pay your monthly bill and where you can cut back.
Talk to your credit card company
If you let them know you can’t pay your monthly bill, credit card lenders will often lower your monthly payment. Be prepared to tell them your monthly income, expenses, and overall situation. This is usually a temporary solution, so you’ll want to have a plan for getting back on track.
Talk to a credit counselor
Nonprofit, certified credit counseling agencies provide free credit counseling. They can help you create a budget, plan for the future, and develop a better understanding of best financial practices. If you’re having difficulty paying back your credit cards, they can also enroll you in a debt management plan. Your credit counselor can work with your lenders for a lower interest rate while consolidating your debt into one affordable monthly payment.
Stay away from debt settlement companies
Debt settlement companies may seem like a good idea, but they often charge high fees—up to 15%–20% of your settled debt. Typically, they'll also instruct you to stop paying on your credit cards completely to negotiate a much lower payout. But this is risky and can ruin your credit score. Creditors can also refuse to settle, which means you’ve damaged your score for nothing. Even if they do agree to settle, your missed payments will stay on your credit report for up to seven years.
Unlink your card from your life
Today, you can’t just leave your card at home to avoid temptation. In this digital world, many of us have cards linked to accounts on our phones and through platforms. If you’re serious about paying off your credit card account, make sure to physically and virtually leave your card at home.
Bottom line
Being in credit card debt is stressful for most people, especially when you have difficulty paying it back. Choosing a plan that works for you will allow you to pay back your debt more quickly and efficiently.