Clark Howard's Tips
January 12, 2007
The American Bankers Association reports that credit card delinquency rates are up. Rates have been rising on car loans, home equity lines and credit cards.
It's a problem because it means people are having a harder time paying our debt obligations.
A lot of people got into this situation because they used their home as a piggy bank. Now with home values falling, it's not possible to tap those sources. The next move is usually to start using credit cards to pay for things.
First of all, stop using the cards! If you're having trouble making payments, your credit card accounts may become delinquent. But that's okay. Credit cards are the least of your worries.
You need to prioritize. Pay your mortgage, home equity loan or line, car payment and food costs. Those are your priorities. Credit card companies can wait.
If you're having trouble making your mortgage payments, call your mortgage company and tell them. They want to hear from you. Don't ignore them. If you tell them the situation, it will help you in the long run. But keeping mum won't help you.
And consider visiting a credit counselor. Find legitimate ones by going to nfcc.org. They will help you with a financial plan and help get you back on your feet.
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