what if i can't pay the minimum amt due on credit cards?

Answer 1

You will get late charges, and if you continue not to pay, they will turn your account over to a collection agency and put a negative rating on your credit report.

Answer 2

Is this a temporary problem, or a long-term problem? If it's just this month (commissions were way down, you missed a lot of work without pay due to illness, etc.), contact the credit card company and explain the situation to them. The first person you talk to probably can't do much, so you may need to talk to a manager. Often, if you call BEFORE the due date, it shows that you WANT to pay the debt, but are having a temporary set-back and they'll be more willing to work with you.

If this is a long-term issue, FIRST, set up a spending plan (see below) so you know how much you CAN afford to pay them on a monthly basis. Then, again, call the company and explain the situation (you lost your job, your spouse died, whatever). Tell them what you can afford to send each month and DON'T budge from this number. Many will say they need more, but only you know what you can and can't afford.

For the spending plan, start with the necessities - rent/mortgage, utilities, food, transportation (loan payment, gas, insurance, repairs), savings (more on this later). Whatever is left over is what's called "discretionary income" - you decide how to spend it. In this case, you use it to pay off debt. Set some aside (in cash) for nice-ities (a book, CD or trip to the movies every week or two). Otherwise (just like a diet), you'll fall off the wagon and blow a LOT of money because you're feeling restricted.

As for the savings, you need to have some money ($500-1000) in a savings account for emergencies. They will happen and you don't want to ruin your debt-reduction plan by having to use the credit cards to finance the emergency.

For more info, check out either of Dave Ramsey's books, "Financial Peace" or "Your Total Money Makeover". See if either is available at the local library.

Answer 3

The minimum amount due on a credit card is just that... the minimum the company will accept as a complete payment for that month. You should always pay above the minimum to prevent getting hammered with long term interest (you will be paying interest on interest if you do not).

Some card companies will accept interest-only payments for short term which are slightly lower than the minimum payments, but this is usually only on an exception basis and may result in the account being frozen from further purchases.

Best of luck!

Answer 4

It will go on your credit report as a late payment, which you look bad if you apply for a new card, or loan. It takes 7 years to get it off of your credit report, so try to pay the minimum. If you have had the cards for a long time, and they are in good standing, you may want to try to call the card companies, explain your situation, (why you can't pay etc.) and they may give you a grace period if it is because of a hardship; like losing your job or an emergency. I would definitely call before you just don't pay though. Bad credit is hard to fix.

Answer 5

You can try a number of strategies to lower your credit card minimum payments. If you have good credit, you can get a loan.

Your difficulty in even making the minimum payment would suggest that you might want to meet with a credit counselor. They can help you develop and review your budget and may be able to lower your credit card payments through a debt management program.

Answer 6

There's a lot of organizations out there that will help you out. my advice is that the interest rate on credit cards is as high as 30%. all the minimum payment is is the interest, so that continues to go up and up as you have more to pay interest on, while the base sum just goes up from what you buy with it. so take out a loan at a fixed interest rate lower than the credit card one, and pay it ALL off (on the card) and pay a bit more than the minimum payment on the loan, if possible. and always try to pay off all that you own on your card-if not possible, then pay more than the minimum payment DEFINATELY

best of luck to you

Answer 7

Well there are a number of things you can do. However many will negatively affect your credit. 1. when you call the credit card company and express your difficulty in paying they will appoint a seperate credit/debt collector. These guys hurt your credit the most. 2. the best way it is to be pro-active and find a debt consolidator yourself. I really good one is: http://www.christian-credit-counselors.com/?gclid=CNOk-qiOmooCFRE9FQodNg1yog
I don't work for them or even know them personally. I have just heard that they are the most considerate and effective to your situation.

Answer 8

If you can't pay your minimum on credit cards, try calling the company and ask them if you can get an extention, or they might make up a payment plan at no or less interest.
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Answer 9

Call the company and ask them to close the account and talk to them about a lower minimum.. But they may only due it if you freeze or close the account.. Otherwise you have to pay the minimum..

Answer 10

I would call the credit card company and see if they will work with you.
If they give you a late payment, then call and explain your situation and see if they can remove it.

At this point, you should start considering paying off your debts.