Watching Your Wallet: How to pay for your credit card bills
LANSING, Mich. (WILX) - If you’ve lost income because of the pandemic, paying your credit card bills may have taken a back seat in your spending priorities.
If you are worried about being able to pay your credit card bill, there are several things you can do right now.
First, call your card issuer. Many are offering relief in the form of deferred payments and fees according to our partners at the financial website Nerdwallet. To avoid overdraft fees, consider turning off auto pay on your credit card or adjust it so you are paying the minimum due each month.
Also, make sure to look at where you are spending your money. Pour over your last few statements and see if there are expenses you can trim. Start with subscriptions or memberships you no longer use.
It’s also worth it to downgrade your credit card to one with no annual fee. That keeps your account active at a lower cost. Many credit card companies also offer zero percent interest on balance transfers. That will buy you time to pay down the balance without the additional monthly costs.
However, be aware that most charge a balance transfer fee of 3-5%. Make sure you pay it off before the promotional period ends, otherwise, you’ll pay interest on the remaining balance.
You can also consider applying for a personal loan to consolidate debts at a lower interest rate. The better your credit score, the more options you have, but there are loans available for those with less than stellar credit.
Copyright 2020 WILX. All rights reserved.