In unexpected times like this, only a few people are not experiencing any financial crisis, with many people having credit card debt, definitely, they are struggling more financially compared to others. Fortunately, a lot of credit card companies offer multiple forms of financial and credit card relief to their customers who experience a drastic financial downfall.
Despite the offers coming from companies who issue credit cards that provide instant relief to their cardholders, they still need to request assistance in order to qualify. Fox Business compiled the things that you need to know and your options in order to have your credit card relief in times of financial struggle.
Credit Card Debt Amid A Financial Crisis
If you do not have an extra fund to cover credit card debt, here are your options:
Personal loan application: Compared to your standard credit card, personal loans charge lower interest rates, so instead of staying with your so to the credit card issuer, you could actually save money by consolidating your debt. The terms that you will have will depend on the credit scoreu. But since it is consolidated, your monthly payment will be higher compared to your usual minimum payment. On the other hand, if you will consider having a personal loan, you can also check and visit credible to get pre-qualified and see the personal loan rate that suits your preference.
Balance transfer credit card application: Offering an introductory zero percent APR promotions, balance transfer cards gives you time to pay off your debt with free interest. Despite not having enough funds to pay it off within its promotional period, you can still have valuable time to get back on track with no interest hitting you. You can see the free online tool of Credible to have a comparison of cards and find the one that meets your needs.
Using your credit card rewards: Instead of using it to other things, better try to pay your debt with your earned cashback.
Credit Card Relief Offers You Can Get During a Crisis
Struggling during a financial crisis? Here are your alternatives or request options to have some credit card relief:
Waived fees: If it is your first having your monthly payment late, then you might be eligible to get the late fee waived. Remember, it is only applicable for good payers an only got delayed for the first time.
Increasing your credit line: This requires a hard credit check that will have an impact on your credit score but if you are on the verge of maxing out your credit card limit then it will be the best option.
New due date: Moving your due date could be a great help as it will align your payment date to paycheck dates so that you can have your money ready for payment.
There are multiple ways to fix your financial instability, but your best option is to contact your card issuer to know better your options.
The Credit Counselor:
A debt management plan could be the answer to your needs, and a credit counseling agency could deliver that. Credit counselors can give assistance in reducing your monthly payments for just a modest monthly fee even using your credit card rewards instead of using other things.
Start to make comparisons of your options in your current situation. Maybe you just need a credit counselor, they typically offer free consultations and gives out professional advice from your short-term to long-term needs. They can also help you choose the type of credit card releif that will help you the most.