A growing number of Americans say they are concerned about missing credit card payments, according to new data from the Federal Reserve.
That data shows concerns over credit card payments are the highest they’ve been since 2020.
Last year, 82% of Americans had at least one credit card with an average balance of roughly $6,500.
Ted Rossman with Bankrate says if you can’t make a minimum payment, you need to reach out to the credit card company.
“Maybe they’re willing to work with you in terms or rearranging your due date or giving you permission to pay less or nothing at all for a time,” Rossman said.
He said credit card holders should also consider reaching out to a credit counseling agency.
“They can often negotiate something like a 7% or 8% interest rate over four to five years,” Rossman said. “That sure beats the average credit card rate, which is over 20%.”
He added it’s always important to act early. Negative payments will stay on your record for up to seven years.