Ideally, unemployed cardholders who are struggling to repay certain debt obligations like their credit cards would be in a position where forbearance will be offered for a set period of time, but this is not always an opportunity that men and women have seen when financial distress arises. However, this does not offset the fact that many consumers are currently in need of help with not only credit card debt payments but other forms of debt obligations as well, particularly for those who have been unemployed for a few weeks or months. Long-term unemployment has been a drain on the personal finances of consumers since the recession, but cardholders who are looking for some relief from creditors may have some opportunities available to help them avoid missed payments.
When it comes to speaking with creditors a cardholder’s history may already be working for or against them depending on how they have paid in the past. There have been accounts where consumers have had an excellent credit history, have made their payments on time, and have had relatively little problems in relation to their credit cards but thanks to sudden unemployment or financial distress they are in a position where help is needed. In these instances, many credit card companies will help those who are good customers, as some consumers may have seen periods of forbearance offered, reductions in rates or minimum payments in the past.
Yet, if a consumer may not be in the best financial position, it may require more before affordability on credit card payments can be found or even a forbearance option be offered by a creditor, but this is where a great deal of variability comes into play depending on the credit card lender. When advisers have been consulted on these types of issues, consumers are often told that they must make sure their creditor understands they are willing to repay their debts, but may simply be unable to at the present time and advisers have pointed out for those who are currently in this position that it may be beneficial if they can show evidence of financial setbacks that are outside of their control, like unemployment.
However, since some creditors are seeing problems with many consumers in regards to the inability to pay because of unemployment, sometimes it comes down to the credit card lender and a consumer’s ability to repay in the future, as creditors may offer debt repayment assistance on credit card obligations if a consumer has simply seen a period of unemployment where they had no income and now run the risk of falling behind on payments. If long-term unemployment is a problem, this is a situation where the variability and uncertainty comes into play once more, as creditors are often looking for potential repayment opportunities in the future, even if that means allowing a consumer to forgo payments at the present time.
Success has been seen by some consumers who consult with their creditors early or speak with credit counseling agencies to help them get a better handle on their spending in the hopes of saving more so that repayments can be more easily made, but consumers who are unemployed and have credit card debt may, once again, be in a better position to negotiate with creditors or formulate some sort of plan if they address their issues early, present only facts rather than getting emotional when working out a credit card debt repayment plan, and simply exploring multiple ways that a credit card debt obligation may eventually be repaid.