The Truth about Credit Card Delinquency

What is Credit Card Delinquency?

Watertown credit counseling repairs delinquencyIf you are ever late in making your payment to the credit card company, you become delinquent. Each month, you are required to make the minimum amount owed; if you fail to do so, the account goes into delinquent status.

The number of missed payments is what determines the category in which your accounts stands. For instance, missing a single payment makes the account delinquent one day and missing two payments makes the account 30 days delinquent.

The bottom line is that when you miss paying at least the minimum amount due on your credit card, the account goes into delinquency.

Although missing a payment is never good, typically a single missed payment is not reported to the credit bureaus. If you miss two payments in a row, the credit card company will report your account as delinquent.

The Impact of a Delinquent Credit Card

Once your credit card account is reported to the credit bureaus, your FICO credit score drops. Unfortunately, by missing three consecutive payments, you could see a reduction in your credit score of as much as 125 points. Taking a hit like that is devastating to your overall credit rating. Obviously, missing four payments would be even worse in that the account would go to collections and you could face legal trouble.

Avoiding or Repairing Delinquency Through Watertown Credit Counseling

If you are unable to pay your bills, consider talking to an attorney who offers Watertown, NY, credit counseling. Obviously, the goal is to make the minimum payment — more if you can — but if you cannot do this, then credit counseling in Watertown is imperative.

As an attorney group who offers credit counseling in Watertown, we can show you viable options for getting out of debt, which may or may not include bankruptcy. While there are consequences to bankruptcy, this is one way to get creditors off your back and start with a clean financial slate.

However, with bankruptcy being a huge decision, you should first start with Watertown, NY, credit counseling. Together, we will go over the details of your situation and then devise the right plan. Rather than fall behind on payments and have your credit ruined, we invite you to call us so we can provide you options that will help you get out of debt.

 

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