During the pandemic, many Americans are struggling to meet with their credit card factories.
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In one of the worst recessions in U.S. history, nearly 80% of credit card holders said they were worried that they would not be able to continue or even pay off their minimum debt.
The number comes from a survey by CreditCards.com, which found that millennial card holders (91
Even when the coronavirus pandemic shows no signs of abating, most of the relief measures provided to Americans through the first round of stimulus have dried up. The unemployment rate is still above 10%, higher than at any time during the Great Depression.
More than 60% of survey respondents said that if they cannot resume work, they may not be able to pay the minimum wage. CreditCards.com analyst Ted Rossman said: “This is uncomfortable news.”
Rossman said that the credit card debt of an average American family is about $5,700, and the minimum repayment is about $133.
Depending on your situation, you may not be able to use any credit cards temporarily. Your rent or mortgage may need to be paid first.
National Credit Counseling Foundation spokesperson Bruce McClary said: “If it is a house, you may lose the roof.”
However, LendingTree senior executive editor Julie Sherrier (Julie Sherrier) said that if you still do not believe that you can make the minimum payment with a credit card, then your first step should be to contact the issuer. (The phone number of the card issuing bank is usually on the back of your card.)
Sherrier said: “The issuer has responded to this epidemic by creating a plan to help customers during this time.” “However, it depends on whether the customer actively seeks help.”
Rossman said that Apple Card allows certain consumers to postpone payments without incurring interest. Other banks have their own difficulties plan, you can apply. Experts say this may help explain your situation to the issuer. Maybe you are unemployed, but you are looking for a job or expect to start receiving unemployment benefits soon.
The card issuer may allow you to pay less than the minimum payment amount. No matter what agreement you reach, be sure to specify the terms in writing from the bank.
If you expect payment problems will persist, then the best option is to find a financial advisor at the National Credit Counseling Foundation.
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McClarry said: “They will help you develop a plan to deal with debt challenges.” A counselor can help you develop a budget, which will help you understand where to transfer some funds to your debt.
In some cases, the counselor will contact your creditors on your behalf or provide you with strategies to minimize debt.
McLarry said that generally speaking, people with multiple credit cards want to prioritize larger balances.
This is because these accounts “if they become involved in illegal activities, it will have a greater impact on your credit score.”
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