Recently lost your job? It can be stressful and hard to manage your finances in such situations. So, if you are dealing with a job crisis along with some credit card debt, here are some options that might help you find your way out.
Contact your lender
If you are unable to make the minimum monthly credit card payment, it is best to contact your bank or lending institution. Remember, you are not the only one dealing with a financial crisis. It is always better to be up front about your condition. Banks deal with non-payment of credit card dues on a regular basis, and they might be able to help you with some options.
Consult a budget friendly credit counsellor
Credit counselling agencies are good at finding ways to eliminate debt crises. Your job is to look for a trustworthy non-profit organization to help you out with your crisis.
A credit counsellor coordinates with the lending institution on your behalf and tries to figure out a middle ground for both parties. Where you can pay off your debt at a lower interest rate and the lending institution receives the money you owe them. You may also ask your counsellor to rework your budget plan as per the current financial conditions.
Re-think your future credit card usage
Limit your credit card usage to the bare minimum and the essentials only. It will be easy to pay off bills without the fear of excess accumulation of debt.
Consider the below mentioned options while using your credit card:
- Make minimum monthly payments: If you are having trouble paying the entire monthly credit card bill, don’t miss out on the minimum payment. This will ensure that you are on track and can avoid extra fees.
- Adjust payment dates: If all your credit card bills are due on the same date every month, you can change your credit card payment due date. Usually, the change of date will be active in 1 or 2 billing cycles.
- Redeem your credit card reward points: If you have a credit card offering cashback, reward points, and other benefits, now is the time to claim them. Always look to apply for a credit card with the best offerings at a low maintenance cost.
- Apply for a balance transfer: A balance transfer is a good way to pay off an existing balance at a lower interest rate and for a limited period of time. The time could typically be between 6 months and 2 years, depending on the card and the offer. What you will be doing is that you will be paying the minimum amount for a defined period without the additional interest.
Consider your emergency fund
If you have an emergency fund, you may consider using some funds from that account to pay your credit card debts. The reason for having an emergency account is to support us during testing financial situations. So, go ahead and use a small portion of your emergency fund to support the cause.
Tip: If you still don’t have an emergency savings account, consider one now. You never know when and how things might go wrong, and having some buffer cash is always handy. Open zero balance account and start saving whatever you can. Why a zero balance account? Such an account is free of any maintenance charges and offers interest on every rupee saved in the account. You can go one step ahead and choose the Kotak811 zero balance savings account. This is one of the best savings instruments available in the market, and the account offers multiple features that are really handy for carrying out regular financial activities and investment programs.
It is hard when you are facing an employment crisis and have to deal with multiple financial decisions at the same time. But don’t worry, you have options. Learn more about where you can save money for a crisis (and also why it works so well). #KhabarLive #hydnews #hydlive