Some good news was reported earlier this month in terms of credit card debt as the Federal Reserve reported that, for the month of July, there was a decrease in the amount of revolving credit that consumers have in place, which could be an indication that more men and women are focusing on paying down their credit card balances for a variety of reasons. However, one area of consumers are obviously still facing debt problems thanks to extended levels of high unemployment and joblessness as many unemployed men and women are still having trouble when it comes to paying back debt, like credit cards, and may require help so that they can avoid financial setbacks in their personal lives.
As an example, some unemployed individuals may find hardship assistance for their credit card debts through either forbearance plans or even reduced payment opportunities available directly from their credit card lender, but there has been some unemployed men and women who have overlooked these opportunities or may still be relying on their credit cards to make certain purchases, which if long-term unemployment is a factor in their lives could be a problem.
Yet, financial advisers and credit counselors have long been prompting consumers to focus on paying down their credit card debt due to the fact that this can have positive results in a variety of ways within a consumer’s life. Understandably, not everyone is going to be in a position where they can meet credit card repayment costs nor are they always going to be able to pay off the entirety of their balance in a relatively short time frame, but when further problems arise and consumers may be unable to even meet minimum payments or interest payments have become quite problematic, consumers need to look at the source of their financial problems.
If indeed factors like unemployment are in place some consumers have been able to talk with their credit card lenders in the past and get forbearance options, reduced payments, or even interest rate reductions when their financial distress has come due to no fault of their own. What this means is that some men and women may be able to show unemployment as the major factor behind their inability to pay their debts, as well as show that they had a good credit payment history before unemployment became a problem, then this could lead to some leniency on the part of creditors.
This is not always a guarantee but currently cardholders may be able to first contact creditors to see if there is any hardship assistance options available for their particular situation and consumers may also be able to get help from a nonprofit credit counselor or financial adviser for further guidance on how they can meet certain debt payment obligations during periods of unemployment. While the repayment techniques that a cardholder uses will depend on their personal situation and ultimately will be their decision, talking with creditors or financial advisers may offer guidance to these men and women in a way that will help them avoid financial setbacks that can arise during a time where unemployment is a factor.