Missing out on a credit card payment, by completely forgetting about the payment date, is one of the worst feelings possible. This has several damaging consequences. But to mention the three things that affect you most – a much higher interest rate shall be charged by the credit card company, a late fee is charged, and this is accompanied by the downgrading of your credit rating, with a serious drop in your credit score. Now that you have already made a grievous error, how do you get out of the hole that you have landed yourself into ? We offer a few solutions. Do read on.
1. Call Your Credit Card Company, In Case Of Prior Knowledge Of Late Payment.
If you know in advance that you shall be missing out on your credit card payment, for various reasons such as insufficient balance in your account or a sudden financial emergency, then, you will do well to call the customer care of your credit company and inform them beforehand about missing the payment. For instance, if you are a holder of a Barclaycard credit card and you know for certain that you shall be missing out on your payment, you should call the Barclaycard customer services immediately. You shall have to do a lot of convincing. If the customer representatives are convinced that you are a highly valued customer, and that you shall not miss out on a payment in the future, they may decide to waive off the late fee that would otherwise be levied on your credit card. This helps tremendously in restricting the damage. But remember never to admit a shortage of funds or an absence of income. Just convince them that it is a temporary problem.
2. Call Your Credit Card Company Anyway, Even After Missing The Payment.
This is slightly tricky. The customer representatives in a credit card company are trained to be merciless and brutal in their engagements with customers who have defaulted or missed a payment. You will have a hard time convincing them about your value to the credit card company. Point out to the fact that you have only missed one payment, and and put it down to purely an accidental error. Assure them about your financial solvency, and the fact that you will never miss out on a payment ever again. Try to convince them not to increase the interest rate on your credit card account. Usually, if the customer succeeds in putting across his view well, and if he has only missed a single payment, credit card companies waive off the increase in interest rate – which could save your financial situation considerably.
3. Manage Your Debt Better.
A more preventive step on your part would be to have a much better hold over your finances. There are several software tools and mobile apps that help you manage your finances better. You will do well to make use of them. But the best solution, of course, is to practice thrift and frugality and control the impulse to spend with reckless abandon.
Missing a credit card payment is a horrifying thing to happen to anybody, as it has the potential to permanently wreck one’s financial happiness. We have offered a few solutions that could help in salvaging a really bad situation. But ultimately, the best and the most simple advise we could possibly offer our readers is, not to spend what they have not earned.
Jack is a professional financial adviser based in USA. His usual advise to clients in deep financial trouble because of late credit card payments is – call the Barclaycard customer services. He lives with his wife and 3 sons.