Credit Card Debt and Coronavirus Relief Options

The Covid-19 pandemic has affected most people in different ways, including financially. The lock-down and the social distancing requirements left families without a stable lifeline to support their daily basic needs. 

Credit cards are lifesavers when finances are tight and they have come through for most folks during this pandemic. Still though, accumulated credit card debts can be a headache to clear. 

You should get professional help to find reliable credit card debt and coronavirus relief options to get out of debt to save you from the calls from debt collectors and the nerve-wracking financial strain in your life. Enrolling in a credit card relief program is a step towards financial freedom. 

The financial expert can help you find different options available from your credit card issuers. Most of them have a credit card relief program for cardholders. Continue reading to learn about the relief options. 

Defer Monthly Installments
Credit card companies are now allowing cardholders with outstanding debts emergency relief as they continue dealing with the effects of coronavirus. You can defer the monthly installments for some time as permitted by the company. It may be a couple of months, but it can help you reorganize your finances then continue paying the required monthly installments after the time lapses.

The time to defer monthly installments might be longer depending on the negotiating power of your financial expert from a reputable credit card relief program. You will resume the monthly payments when the forbearance period ends. The advantage of this credit card relief option is that your debt will not attract penalties or interests. 

A good example is Goldman Sachs, Apple Credit Card Company, allowing card members to skip a month’s payment without attracting interest charges. Capital One is another example of credit card issuers offering the cardholders the deferred loan payment option. 

Lowering Monthly Installments
Some credit card companies prefer to lower your monthly payments than let you defer. For example, American Express offers reduced monthly payments temporarily for cardholders facing financial difficulties due to the covid-19 pandemic. Lowering the monthly installments is a great option that can give cardholders some relief from the financial stress. 

To learn more about the lowest amount you can pay to offset your credit card loan, your hired professional from the credit card relief program should call the credit card company for accurate and the latest information. The expert might negotiate for lower payments considering your economic or financial situation. 

Waiving Late Fees
When you miss making the minimum monthly payments, it attracts late fees added to your loan amount, increasing the accumulated credit card debt. Imagine if you can’t afford to pay for a year because your business is still struggling to survive, finding school fees and food for your children is a hassle, and paying rent is another headache you must endure. Your loan balance will skyrocket, making it more difficult for you to clear because of your financial burden and responsibilities. 

The credit card relief program comes in handy when you want to continue repaying your debts, but the late fees are too high. The professionals should ask for a one-time waiver of the late penalty fees to help you offset the balance at ease. 

Reducing Interest Rates
Every debt is repaid with interest to be profitable for the lending company. The interest rates differ with each credit card company. Before taking a loan, it is financially wise to know the amount of interest you will pay back on the total loan amount and decide if it is reasonable or not. The following table shows the interest rates used by most credit cards in the country to offer loans in 2022.

Credit Card Rate Report from creditcards.com 

From the table, if you pay your loans on time, you can enjoy lower interest rates of 12 percent, while defaulters can get loans with up to 25 percent. With these tough economic times resulting from covid-19, defaulting might be easy if you lack the funds to repay, finding yourself taking loans with high-interest rates of more than 25 percent. 

Fortunately, several credit card companies consider lowering their rates for their customers whose finances are hard hit by the contagious virus. The credit card relief program you are in should call your credit card issuers and ask for lower interest rates because of the coronavirus-related hardships. It can be for a short or long period, depending on the agreement the credit card relief expert will obtain from them on your behalf. 

Not to Charge APR
A penalty APR is the higher interest rate a person gets when they fail to repay their monthly installments on time more than once. The APR is more dangerous to your credit card loans because they might charge as high as 29 percent depending on the credit card company. 

Your credit card relief program can request the credit card companies you owe not to impose the APR penalties on your outstanding loan amount because of the financial hardships you are currently facing due to coronavirus. Learn more about APR to avert the high-interest rates in any of your loans in the future. 

Listing in Credit Bureaus
One way lending companies make sure you never access another loan is to put you in the financial list of shame, a credit bureau. All lenders check your name on the list before they decide to give you a loan. Credit card companies also send names of defaulters or people that pay their debts late to the credit bureau. 

Your name in the bureaus will affect your credit score negatively. So you should always keep your credit cards in good standing. Your credit card relief program can request the credit card company not to report you to the bureaus due to your devastating coronavirus-related economic situation because it is a voluntary practice. 

Extension of Due Dates
Another option your credit card relief program will come across is the extension of the payment due dates. If your loan initially ends in Dec 2022, the credit card company can increase the months up to 2023 to give you ample time to repay your loan. 

You should not shy away from getting a trained and certified professional that will make the call to request the extension of due dates on your behalf. For instance, credit cardholders of Chase Bank calling in for financial challenges arising from Covid-19 get their wishes as the customer service specialists to extend the due dates for their payments. 

Refunding Late Fees
If you make late monthly payment installments for your credit card debts, the company imposes late fees on your balance. But, with the financial distress of most customers affected by a coronavirus, the professionals are refunding late fees already charged to the client’s accounts. 

Developing A Payment Plan
The credit card relief program can also opt for an effective payment plan that fits your current monetary situation. The experts will have an intensive discussion with the credit card company to find a suitable way to get their money back without straining their cardholder. 

Before the credit card relief expert and the credit card issuers develop a payment plan, they should consider the amount the client can comfortably pay to offset the existing balances. 

In a Nutshell!

If you have credit card debts that are becoming a burden to pay, enroll in a credit card relief program such as the one at Freedom Debt Relief. Our professionals will help you find a way to offset the debts as soon as possible. 

To learn more on this topic, consult with a credit counseling professional to get insights into managing your money to fix current financial problems, including credit card debts.

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