Credit Card Problems

Some people think credit cards are great ways to get what you want right now. They are, but they also come with responsibility and consequences. Find out your options.

So you got that great credit card last year with a low introductory rate and super rewards, but then the unthinkable happened. Just about the time that your great rate wasn’t so introductory anymore, you lose your job. Now you’re stuck paying 24% interest instead of 9% and the minimum payments don’t even cover the balance. What do you do?

Thousands of people who have credit cards are in the same boat. With the current economic state, people have to cut back on spending. That cut back includes credit cards. What most people don’t know is that you can’t cancel that high interest money sucking card until it’s paid off. On top of that, paying only the minimum amount due could take 20 years to pay down. This is where people get into a bind and lose their cards. 


One thing to remember is that your credit card company will work with you. On your original credit application there was a box for an additional feature that you never thought you would need. In the case of illness or job loss, you can suspend your card payments for up to a year. Certain restrictions apply and you have to ask for the program up front. You can’t wait until they’re about to turn you over to a collection agency.

The best way to avoid this type of credit card nightmare is by paying your balance each month. Don’t think of it as free money. In the old days a man’s word was his honor. These days a man’s credit rating is his word. You get judged by your credit score even when you apply for some jobs. So not paying could get you into a spiral that you could never get out of.

Communication and responsibility are the most important characteristics of a great credit customer. In good times and bad, remember not to hide from your credit card company.

For additional information on credit cards or related topics please visit our library of credit card articles.