Dealing with Debt Burden: What to Do When You Can’t Afford Credit Payments Anymore

When you face the reality of an insurmountable credit card debt, it is important to take immediate action to avoid the worst-case scenarios. Many people assume they can close their card and ignore the debt, only to find out this is a major misstep. Here's what you need to know about dealing with credit card debt and how to take control of your financial situation.

The Truth About Closing a Card with a Balance Owed

Unfortunately, ignoring the debt is not an option. The moment you stop making payments, the deck is stacked against you. Your card balance will be mailed to you, or you may be prompted to make a payment via phone or online. It is mandatory to pay off the debt, no matter what.

Closing a credit card with an outstanding balance is not as simple as it seems. When you close a card, you still have the responsibility to pay off the balance. Additionally, the outstanding balance can continue to accrue interest, so ignoring it is not a viable solution.

Physical and digital methods, such as cutting up the card or contacting the credit card company to stop usage, do not absolve you of your financial obligation. The account remains open until the balance is fully paid. Simply put, whatever you charged must be paid for.

Consequences of Ignoring Your Debt

Ignoring your debt does not solve the problem. Credit card companies are not in the business of giving you a free pass, and they will take all necessary steps to collect. This includes:

Collection calls Visits to your home or workplace Legal action leading to wage garnishment or seizure of assets

These actions can severely impact your life, making financial recovery much more challenging. It is crucial to acknowledge the reality of your situation and act responsibly.

Steps to Take When You Can’t Afford Credit Payments

Here are some actionable steps to help you manage your debt:

1. Increase Your Income

One solution is to find a part-time or additional job to boost your income. Extra income can significantly improve your ability to make debt payments. You can offer your skills in various fields, including:

Freelance writing Part-time work at a local store Tutoring or teaching Driving for a ride-sharing app

Even a small increase in your income can make a significant difference in your debt repayment plan.

2. Create a Repayment Plan

Consider contacting a credit counseling agency to help you create a tailored repayment plan. These organizations can provide professional guidance and support, ensuring you manage your debt effectively. They can also negotiate a lower interest rate, which can save you money in the long run.

3. Consider Bankruptcy as a Last Resort

If your debt is overwhelming and other options have been exhausted, bankruptcy can be a viable last resort. However, it is a significant decision and can impact your credit score for years to come. It is recommended to consult with a financial advisor or bankruptcy attorney to understand the full implications.

Remember: When you close a credit card with a balance owed, the debt does not disappear. You are still responsible for paying off the balance, and ignoring it can lead to severe financial consequences. Seek professional help and take proactive steps to manage your debt. Your financial future is within your control.