How To Defer Payments To Credit Cards

If you experience financial hardship, the last thing you want to worry about is how you are going to pay your credit cards. Failing to pay your credit cards can result in finance charges, late fees and notices from collection agencies. Instead of hurting your credit, you can inquire about deferring your payments until you are on your feet again.

Contact your credit card company as soon as possible to avoid any fees. Call the customer service line of your credit cards. Tell the customer service representative that you do not wish to default on your accounts. Ask they company would be willing to temporarily defer payments. Give them the basics of your financial situation, but don't over-explain. Ask if the credit card company would be willing to take a lump sum.

Find out if the company would allow you to defer payments now and then pay a lump sum in several months. Transfer the balance to a new card that has a promotional period where no payments are required for a set period of time. Some balance transfer credit cards allow you to make no payments during a promotional period.

This can defer the payment of the credit card balance until the introductory period has ended. Find these credit card offers through credit card comparison sites like Credit Net. Contact a credit counseling service. Look for a reputable business in your area that is affiliated with the National Foundation for Credit Counseling. Select a debt management plan and enroll in it. When you open a new credit card account, you will likely be offered an optional payment protection plan.

Enrolling in this type of plan, typically only requires a phone authorization and allows you to defer payments on the card for a set period of time. You are charged a small monthly fee that appears on your credit card statement. Benefits are typically available to individuals, who have lost their job, become disabled, required to report for military duty, or a similar lifestyle change.

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Typically if you have three or four or more credit accounts, the credit limit on those accounts would of gotten pretty high. But another method they also use is to offer you an attractive rate of interest to either start a new account or transfer debt from an account you have to your existing account. Transferring balances has its good side and its negative side and you need to be smart about both.

Read every word of the offer, even the small print on the back of the page because you must understand any hidden fees you might face if you accept their generosity. Almost always the zero percent or low percentage rate is for a very limited time of perhaps three or four months. In credit card land, this is a heartbeat. Then once they have your account balance of your debt built up, they can jack your rates up and you are right back where you started. So be smart about using these kinds of offers.

A great tactics is simply to transfer a fairly small amount of your debt to the zero percent offers. 1000 and then pay it off over the three to four mouth period. You win because you paid no interest and they lose because they can’t sting you with a high interest rate at the end. Also be aware of any transfer fees or membership fees if you are taking out a new card. These fees can amount to additional interest and negate much of the benefit.

But if you are smart and use these offers shrewdly, they can be terrific ways for you to drive down your credit card debt in a clever fashion. Learn more about How To Handle Debt. Stop by Stephan Bloomers’s site where you can find out all about their Getting Out Of Debt Plan and what it can do for you.

We receive a commission payment for most of the cards on the page. We rank them in order of savings that we have calculated from our initial example, not on any commission that we receive. We want the consumer to get the best deal possible for their individual needs and situation.

We have checked the whole market, looking for the best balance transfer offers and included them. We have also included some of the major banks best balance transfer offers so that people can compare. A balance transfer offer reduces the amount of interest you pay and makes sense for people that currently hold a balance and have good credit.