What to do when you think you`ll miss a payment

The economy isn’t exactly in the best of shape now, no matter where you live. Gas prices keep climbing, and all the other prices seem to follow along with it. If you are struggling to pay your bills right now, you are not alone. Nevertheless, you have to be aware of the damage a missed payment could do to your credit. Before you miss a payment completely, there are some steps you need to take to minimize the damage to come. That way you won’t have to live with a bad credit history in the future. Listed below are some suggestions to help you get through a possible missed payment with as little damage as possible.

Ask for an Extension

If you think you could logically pay off your bill shortly after your due date, you may want to ask about an extension. Most places will probably charge you a late fee, but they will at least let you make your payment without any penalties on your credit. I have to do this on occasion because I don’t always get paid in a predictable manner. I may get paid on a Monday one week and on a Thursday the next, depending on the clients I am working for at the moment. If you make a clear plan to pay something back within a given time frame, you should be able to get the leeway you need to fix the situation.

Pay Part of the Bill

In some cases, you can pay a portion of the bill to avoid any complications with your credit. I was in a really bad car accident a while back, and it left me without the ability to pay much of any of my bills. I kept my phone on for two months straight by just paying $50 towards the bill and making a payment plan for the remainder of the bill. If you can at least make a partial payment towards your commitment, you can show the lender or service provider that you are making an effort to fix the situation. They will hopefully show you some compassion after that.

See If You Have a Grace Period

Your due date isn’t always your official due date. It’s just the date that a place would like to see a payment by. Most places have a three to ten day grace period, where you can make your payment without any type of penalty. For instance, my rent is due on the first of every month, and I have three days after that for a grace period. If I do not pay by the end of the fourth, I have to pay a $25 late fee and $10 per day that I am late. You can talk to your bill collectors about the possibility of a grace period and see if you have any wiggle room from there.

Discuss Your Options

As tempting as it may be not to contact your bill collectors when you think you will miss a payment, you really need to. The more you communicate with them, the more likely they are to help you out. When I was in my car accident, Capital One actually took care of my payments for three straight months until I was able to start paying them back again. They did that because I spoke to them early on about my options. You have to find out what your options are and whether or not you will be able to work within them. Then you just have to do everything you can to make your payments.