During this pandemic, many residents up and
down the Hudson Valley have been holding on to their cash. A wise move
according to financial experts. However,
some basic needs still had to get paid, and the credit card was probably
getting a bit overused. The Consumer FinancialProtection Bureau cautions, however, that if you’re not able to make your
payments on time, credit card debt can add up quickly and result in longer-term
financial challenges. What to do?
If you can’t make your credit card payment, or
think you might not be able to soon, notify your credit card company as soon as
possible. Many credit card companies are
prepared to work with customers impacted by the pandemic.
In order to take advantage of any of these
relief programs, you'll need to first contact your provider to formally request financial assistance. Be aware, however, that many companies are asking you to first
visit their websites or use their mobile apps because they’re experiencing
longer-than-normal wait times on the phone.
Here is a sampling of what most credit card
companies are offering:
Lowering or deferring your monthly minimum
payment
Many credit card companies are offering
emergency forbearance, which allows you to skip or reduce your payments for a
limited period of time. Keep in mind you’ll need to make up any skipped or
reduced payments after your forbearance period ends. When forbearance ends, you
won't be asked to make up missed payments immediately, but you will need to
resume making at least your minimum monthly payments, which may have changed.
Waiving or refunding late fees
If you miss a payment, your credit card company
would generally charge you a late fee. During the coronavirus pandemic,
however, many companies are waiving or refunding late fees, if you request
financial relief because of the pandemic.
Reducing your interest rate
A credit card’s interest rate is the price you pay to the company for
the ability to borrow money. Your credit card company may temporarily reduce
your interest rates for a hardship if you ask for it. Remember that the credit
card’s interest rate will return to normal when the term ends.
Establishing a payment plan to pay off
existing balances
If your hours have been
reduced or you’re only able to make a portion of your payment, you may also be
able to secure a repayment plan that works better for your current situation.