How to Handle Credit Card Debt

September 5, 2025

Falling behind on credit card bills can feel overwhelming. A single missed payment can snowball into late fees, higher interest charges, and damage to your credit score. And when money is already tight, those added costs can make it even harder to catch up.

The good news? You’re not powerless. If you’re worried about missing a payment—or you’ve already skipped one—there are steps you can take to limit the damage and get back on track.

What Happens If You Miss a Credit Card Payment?

●     Late fees add up quickly. Most issuers charge around $30 the first time you miss a payment, with higher fees for repeat offenses. Those charges get added to your balance, meaning you’ll pay interest on the fee itself.

●     Your credit takes a hit. If your payment is more than 30 days late, your lender can report it to the credit bureaus. Just one late payment can drop a credit score by dozens of points, and the mark may stay on your report for years.

●     Accounts can be closed. After about six months of nonpayment, creditors often “charge off” the account, close it, and send it to collections. At that point, you’ll owe the debt collector or buyer, which can create more stress—and more potential risks if scammers get involved.

What to Do If You Can’t Pay Your Credit Card Bill

If you’re struggling to cover your payments, consider these steps right away:

1. Pay at least the minimum

Even if you can’t pay the full balance, making the minimum keeps your account in good standing and prevents new late fees.

2. Stop adding new charges

Put your card away until you’ve stabilized. Every new charge increases your minimum payment, making it harder to catch up.

3. Talk to your credit card company

Lenders would often rather work with you than lose your account. If your situation is temporary, they may waive a fee, reduce your interest rate, or offer a short-term payment plan.

4. Consider credit counseling

Nonprofit credit counseling agencies can help you build a realistic budget and work with creditors on your behalf. Look for programs approved by the Department of Justice to avoid scams.

5. Explore balance transfer offers

If you qualify, moving your debt to a card with a 0% introductory rate can give you breathing room to pay down what you owe without added interest. Just keep in mind those promotional rates expire.

Negotiating with Creditors

If your debt feels unmanageable, it may be worth asking about:

●     Hardship programs. Some issuers allow a pause or reduction in payments after a job loss or medical emergency.

●     Modified repayment plans. Creditors or collectors may accept a lump sum or reduced total if it means recovering at least part of what’s owed. Always get agreements in writing.

●     Professional guidance. A credit counselor or attorney can help you negotiate terms. Be cautious of for-profit debt settlement companies, which often charge steep fees and can make matters worse.

Staying Ahead Once You’re Back on Track

When you’ve caught up on your payments, the next step is making sure you don’t slip into the same cycle again. A few habits can help:

●     Only charge what you can pay off. Treat credit cards like cash—avoid swiping for purchases you can’t repay in full.

●     Set up autopay. Scheduling at least your minimum payment ensures you’ll never miss a due date by accident.

●     Tackle high-interest debt first. Focus extra payments on credit cards since they typically carry the steepest rates.

●     Build an emergency fund. Even a starter cushion of $500–$1,000 can prevent unexpected expenses from landing on your credit card. Aim for three to six months of essential expenses over time.

Bottom Line

Missing a credit card payment doesn’t mean you’re out of options. Acting quickly—by making the minimum payment, reaching out to your issuer, and exploring resources like credit counseling—can help you regain control. Once you’re current, building stronger financial habits and an emergency safety net will put you in a better position to handle challenges in the future.

Sources:

https://www.fidelity.com/learning-center/smart-money/cant-pay-credit-card-debt

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.