Taking the basic understanding from the name itself, you have received your credit card statement with payment due date mentioned on it and have no funds at your disposal to clear the dues. And adding to your woes, your salary credit date is much later than the credit card payment due date.
So, now you need a working strategy out.
How To Get Out Of It?
- Find a payment strategy or two
If you have serious intentions to get rid of your credit card debt, then below troubleshooting steps will help you get rid of your financial troubles faster. A strong base, repayment strategy plays a crucial role to keep a credit card in check.
- Pay more than minimum
- Debt snowball
- Debt avalanche
- Consider debt consolidation
If you have a good credit score but your debt payments are a lot, then consolidate them into one account for better management and disposal. That way you can arrange for a single EMI for all of them.
- 0% balance transfer credit card:
- Personal loans
- Work with your creditors
Try negotiating the payment terms with your creditors like smaller EMI’s. Creditors arrive on a compromise in most cases, with new defaulters who have a good past track record of payments, provided you are able to explain your situation with convincing details.
- Seek help
In case, the total due amount exceeds the EMI’s you’re able to pay and you’ re in no situation to clear the due by anyways, whatsoever, you may need to consider debt-relief options, some of which are listed below:
- Debt management plan
- Debt settlement
To conclude, you should apply for a credit card only when you need it the most and always use it wisely keeping in mind the funds at your regular disposal. Proper financial planning always comes in handy for a credit card user, especially when he/she becomes a defaulter.