In the current COVID-19 scenario, US among other nations of the world is also facing the worst recession of the history. More than 80% of the population keeping credit cards don’t feel themselves financially strong enough to pay at least the minimum of the payment of their credit card debts.
The estimation has come in the result of a survey conducted by Creditcards.com, it was also concluded that millennial card holders which are 91% of the total are lying at the higher risk patch of missing payments.
While 25% people said that the pandemic forced them to lend more money through credit card.
Need of another bail-out of package
Major reliefs of first bail-out package given to the citizens of US by the Trump administration have got soaked up. There is no chance of reduction has been expected in the impacts of the COVID-19 pandemic, which is not allowing the economy of raise up once again. And the ratio of unemployment is still lying at the 10%, which is still the highest of all estimated in the pandemic scenario till now.
Consequences and some remedies for not paying credit card debts
Analyst at creditcards.com Mr. Ted Rossman, said that it is horrible to came to know that more than 60% of the respondents of the survey is lacking to pay the minimum of the debts, since they will not get back to the work.
According to the Rossman on average a household in US is having approximately USD 5700 as their credit card debt, and they have to pay at least USD 133 to protect themselves from the penalties.
People are not bothering to think about the credit card debts, because first they need to think about the rentals they need to pay for their residence and any workplaces. Or if it is your house then you might be losing the roof covering your head said Bruce McClary of National Foundation for Credit Counseling.
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Senior Managing editor at LendingTree Julia Sherrier said that “If you still thinks that you are not going to afford even the minimum payment liable to paid off on your credit card, then first thing you need to do is to reach our your issue in no time. The issuers in response to the pandemic have offered many remedies to counter the financial impacts of this contagion. But it should be the customers rushing to their issuers to ask for any possible assistance”.
According to Rossman, “It has been allowed by Apple card to allow certain customers to reschedule the payments without demanding any additional interest. Same like this the other banks are also contributing in rescuing the customers by offering different programs. It would remain the best strategy to discuss your problems with the issuer.
Similarly a card issuer may allow you to pay comparatively less to your minimum payment. But don’t forget to take the written form of decided terms with the bank for the future correspondence and evidence.
“They’ll help you develop a plan to tackle your debt challenges,” McClary said. A counselor can help you devise a budget, which will help you see where you might transfer some money from to your debt.
Story by: Talha Ali Hashmi (Creative Head, MTD), Talha is a researcher possessing a degree in Environmental Studies and a certified Environmentalist from Technical University of Denmark. He is writing on Current Affairs, Environmental Management, Education and Technology since last 8 years