How it works?
The Minimum Payment Trap
How to Escape It
Get help managing your credit card debt through hardship programs designed to provide financial relief when you need it most.
The Minimum Payment Trap
If you're struggling to afford your credit card payments, you're not alone. Millions of Americans face this challenge, and there are concrete steps you can take to regain control of your finances.
Don't Ignore the Problem
Ignoring missed payments will only make the situation worse. Late fees, penalty interest rates, and damage to your credit score can accumulate quickly. Take action now to explore your options.
Immediate Steps to Take
- Assess your situation: Calculate your total debt, income, and expenses
- Prioritize essential expenses: Housing, food, utilities, and transportation come first
- Contact your credit card companies: Ask about hardship programs before you miss payments
- Stop using credit cards: Avoid accumulating more debt
- Explore relief options: Research debt settlement, consolidation, or credit counseling
Your Relief Options
1. Credit Card Hardship Programs
Most major credit card issuers offer hardship programs that can temporarily reduce your interest rate and minimum payment. This is often the best first step.
2. Debt Settlement
If you have $10,000 or more in unsecured debt, debt settlement companies can negotiate with creditors to reduce your total balance. You may be able to settle for 40-60% of what you owe.
3. Credit Counseling
Non-profit credit counseling agencies can help you create a debt management plan with reduced interest rates and consolidated payments.
4. Balance Transfer
If you have good credit, you may qualify for a balance transfer card with 0% introductory APR, giving you time to pay down debt without accruing interest.
What NOT to Do
- Don't borrow from retirement accounts
- Don't take out payday loans or cash advances
- Don't ignore calls from creditors
- Don't file for bankruptcy without exploring other options first
- Don't fall for debt relief scams
Compare Top Debt Relief Companies
If you have over $10,000 in unsecured debt, these companies can help you reduce what you owe and get back on track financially.
| Company | Customer rating | Our pick for | Debt minimum | Maximum fee | Settlement timeline | Year founded | |
|---|---|---|---|---|---|---|---|
  | Best overall | $10,000 | 25% of debt | 12 to 48 months | 2009 | Get Started | |
 | Low fees | $10,000 | 25% of debt | 24 to 48 months | 2002 | Get Started | |
 | 3.7 | Small debts | $10,000 | 25% of debt | 24 to 48 months | 2016 | Get Started |
 | Customer service | $10,000 | 25% of debt | 24 to 48 months | 2011 | Get Started |
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