Many people get behind on their credit card payments before they know what hit them. They fail to make one payment, and then they are sent a statement that is full of additional fees they didn't account for, like late fees, double payments, and sometimes even over the limit fees. The minimum amount due is outrageous by this point. So what can they do to recover?
Oftentimes, when people realize they can't pay the minimum payment due, they think they have no other option but to pay nothing at all. If you fail to make 3 consecutive payments, many creditors will charge-off the account and send it to a collection agency.
If you are unable to pay the total payment asked for, please be sure to send in a lesser payment without delay. You may be able to prevent the account from aging to a charge-off status by making a partial payment.
A Debt Management service may be able to assist you in getting your monthly payments and APR lowered and can also assist you in setting up a budget for yourself. In cases where the account is charged-off to an outside collection agency, additional fees may be added for processing the account. If collection agencies are willing to work out payment arrangements, they will be at a much higher payment amount. However, they usually demand the payment be made in full.
Just remember that, if you can't make the minimum payment, you still need to make a payment - even if it is smaller - to ward off collection agencies. Most likely you will still incur late or over-limit fees, but at least your account will be saved. Should you have any questions or concerns, you can always give Family Life Credit a call.
