Certain things have the potential to cause significant damage to a person’s finances. One of these is missing credit card payments. This is because of the consequences falling behind on such payments can trigger. These include:
- Late fees
- Higher interest rates
- A lowered credit score
Those first two things can greatly increase the costs a person faces in connection to their credit cards. The last one can make seeking new sources of credit much more expensive and difficult.
As a recent survey underscores, there are a wide range of reasons consumers fall behind on credit card payments. The most common reason for missing a payment cited by the respondents was simply forgetting to make the payment. Over a third of the respondents (35 percent) cited this reason.
However, sometimes it is financial troubles, rather than forgetfulness, that leads to missed payments. Some of the other reasons for missed payments commonly cited by the respondents were: paying for essentials, needing to cover unexpected expenses, being unemployed or having no income and prioritizing other types of debt.
When consumers fall behind on credit card payments due to financial troubles, the above-mentioned consequences of missed payments could make their financial situation even worse. This could put them at risk of their financial circumstances spiraling out of control.
Individuals facing such a spiral may feel their situation is hopeless. However, it is important to know that there are ways to combat credit card debt problems and other debt issues. For example, in some situations, filing for personal bankruptcy could provide significant help. Not despairing and instead taking proactive measures can be very important when facing credit card debt problems. Letting such problems fester can give rise to whole new challenges. So, when consumers are experiencing difficulties related to credit card debt, they may want to promptly reach out to a professional, such as a bankruptcy attorney, for guidance on what steps they can take.