What is The Real Cost to Skipping Your Credit Card Payments?

by Jason on January 14, 2010

Times are tough!

Income is down, expenses are up and cash flow is tight.

It’s very tempting to skip out on a debt payment or a credit card bill to help free up the cash flow a bit, but are you sure you realize the impact that decision will have on your credit score?

The Spend on Life team had a great post and graphic the other day that showed how your credit score drops significantly the longer you go without making a payment – so make sure you are staying current with your bills!

In other words, Don’t Flush Your Credit Down the Drain!

SpendOnLife.com is an online resource dedicated to helping consumers achieve healthy credit.  Credit ratings are extremely important for qualifying for low interest rates on new loans and lines of credit.

SpendOnLife.com provides you with up-to-date, accurate information and advice about credit reports and scoring.  Check ’em out.

What Should You Do If You Can’t Pay Your Bills?

Every situation is different, but here are a few tips to help:

  • Call your creditor – make them aware of your situation – many times they can work out a plan with you.
  • Pay something – Even though you can’t pay the whole bill, paying anything shows the creditor you are committed to paying your debt.
  • Seek help – There are some reputable places and agencies that can help you, just be careful.
  • Commit to getting out of debt – Yes it’s painful for a while, but in order to get out of this mess you have to stop spending.

Google+ Comments

Related Posts