(TheConservativeTimes.org) – Overdue credit card bills and holding credit card debt is at a higher level now than it’s been in a decade. The share of credit card debt that is named “delinquent” rose over ten percent during the first quarter of this year. Delinquent credit card debt is anything that’s ninety days past due and it’s said that one year ago just over eight percent of credit card debt was considered delinquent.
Bruce McClary, senior vice president at the National Foundation for Credit Counseling gave some advice on what you should do if you are at risk of credit card delinquency.
McClary said that you should reach out to a nonprofit credit counselor as soon as possible to discuss your options. This same sort of nonprofit can also help you create a debt management plan that has lower interest rates, no late fees, and other benefits that could help you escape the debt that you’re in.
“Taking that first step and contacting a counselor is difficult for many people. You’ll be talking to someone for free, who will listen to you describe your situation. You can share your concerns without being judged for falling into difficulty,” said the President of the Financial Counseling Association of America, Martin Lynch.
Both McClary and Lynch said that reaching out to your credit card company could do you good as well because you could negotiate with the creditors. They said, “The best thing to do is to reach out, give an honest assessment of your ability to pay over time, and ask what options are available to you both ‘on and off-the-menu.”
Experts have said that the high credit card debt is due to inflation and high interest rates. They’ve also said that people have had a hard time readjusting after things like stimulus checks, child tax credits, and unemployment benefits have ended.
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