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CBS News
8 hours ago
- Business
- CBS News
Behind on credit card payments? Here's what to do at 30, 60 and 90 days
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Taking these steps can help you mitigate the damage caused by being late on your credit card payments. Getty Images Credit card debt has been ballooning in recent years, and when you look at today's rate and economic environment, there's really no question as to why. With the average credit card interest rate hovering above 21% and inflation quietly stretching budgets even further, things have gotten pretty tough in terms of finances for a lot of Americans. As a result, more people are struggling to fit both their debt payments and their essentials into their budgets, resulting in an uptick in delinquent credit card payments. But missing even one payment can trigger late fees and a rising balance, making your card debt a lot more expensive — and that's just the beginning. Once you're 30, 60 or even 90 days late, the stakes are much higher. Your credit score can take a hit, your debt could be sold to a collection agency and you might even be facing legal action at some point down the line. But despite the possible consequences, you still have options, and the earlier you act, the easier it is to fix the situation. And, knowing what to do at each stage of delinquency can make all the difference, whether your payment slipped through the cracks or you're struggling to keep up due to a job loss, illness or another financial setback. Take steps to get rid of your high-rate credit card debt now. Behind on credit card payments? Here's what to do If you've fallen behind on your credit card debt, here's how you can start to fix the issue before the damage spirals out of control. If you're 30 days late: Act fast to minimize the impact At 30 days past due, your credit card issuer will likely charge a late fee — usually around $30 to $40 — and increase your balance with accrued interest. That, in turn, can add to the already high costs of your credit card debt. But here's the upside: Most issuers won't report the late payment to the credit bureaus until you're more than 30 days past the due date. That means if you act quickly, you might still protect your credit score. Here's what to do: Make the minimum payment as soon as possible. Sending in at least the minimum Sending in Call your credit card company. If you're facing a temporary hardship, simply forgot to make your payment or experienced another type of issue, it may help to call your card issuer, explain your situation and ask if they'll waive the late fee. Many will, especially if it's your first offense or you've had a good payment history. If you're facing a temporary hardship, simply forgot to make your payment or experienced another type of issue, it may help to call your card issuer, explain your situation and ask if they'll waive the late fee. Many will, especially if it's your first offense or you've had a good payment history. Set up reminders or autopay. Sometimes being late isn't about being unable to pay; it was simply just a mistake. If that's what you're facing, use this opportunity to lock in systems that keep you on track going forward. Discuss your credit card debt relief options with an expert today. If you're 60 days late: Credit score damage starts here If you're 60 days late on your credit card payment, the delinquency will almost certainly be reported to the credit bureaus and your credit score could drop sharply, especially if you had a solid score before. You'll also likely face a penalty credit card APR, which can be 29.99% or higher, applied to your balance going forward. At this point, you should: Reach out to your creditor again. Ask if they offer a credit card hardship program Ask if they offer Consider a balance transfer or personal loan. Consolidating your debt a balance transfer credit card Start aggressively tracking your budget. Cut out nonessentials from your budget and reroute every dollar you can toward the payment. When you're 60 days late on your credit card payment, every delay gets more expensive. If you're 90 days late: The collections clock starts ticking Once you're 90 days late on your card payment, the situation becomes critical. At this point, most credit card issuers will typically escalate your account to a collections department or sell it to a third-party debt collector. Your credit score could fall even further, and depending on the creditor's policies, they may start moving toward legal action. That doesn't mean you're out of options, though. Here's what to do at this point: The bottom line Falling behind on credit card payments is a more common issue than many people realize, especially in this current financial environment. But if you're delinquent on your card payments, the longer you wait to act, the more damage you'll face to your credit, peace of mind and financial future. So, whether you're 30 days behind or are heading rapidly toward collections, don't ignore the problem. Start with a call to your creditor, explore your relief options and take small steps toward a sustainable solution.
CBS News
08-05-2025
- Business
- CBS News
What happens if a debt collector refuses payment?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Debt collectors aren't necessarily obligated to accept your payment, even if it's a good-faith effort to settle what's owed. Getty Images/iStockphoto In today's high-cost economy, millions of Americans are struggling to stay on top of their bills. And, with credit card interest rates still hovering near historic highs and sticky inflation continuing to strain household budgets, it's no surprise that more debts are ending up in collections right now. Once a debt gets handed off to a collection agency, though, things can get complicated fast. Trying to resolve collection debt isn't always straightforward, after all. You might be ready to pay something — anything — just to get the debt off your back. But the process doesn't always go the way you expect. At times, the roadblocks can keep coming, even when you're making a good-faith effort to settle up and take care of the debt. That's when frustration can set in. You're trying to do the right thing, but the debt collector on the other end of the phone won't budge. So what now? Here's a closer look at what can happen in these situations — and what you can do about it. Learn how to start tackling your collection debt today. What happens if a debt collector refuses payment? It may sound counterintuitive, but debt collectors can and do refuse to accept a payment under certain conditions. The outcome of a refused payment depends on the specific circumstances, but generally, the debt remains active, continues to accrue interest and fees and may eventually result in legal action if left unresolved. In these cases, thorough documentation becomes your best ally. Always keep records of any attempted payments, the communication between you and the debt collector and the payment refusals as evidence of your efforts to resolve the debt. To help you better understand these situations, here's when and why a debt collector may decide to refuse payment: You're offering a partial payment. If you're behind on a large balance and try to send a smaller payment, the debt collector might reject it. That's especially true if the agency handling your debt has a policy against accepting anything less than a full payoff. In these cases, the debt collector may see a partial payment as delaying the inevitable or weakening their ability to sue you for the full amount. Explore your debt relief options with the help of a debt relief expert today. You're trying to settle the debt. When you offer to settle, meaning you want to pay less than you owe in exchange for closing out the account, the debt collector isn't required to accept your offer. They might think the amount you offered is too low or that you have the means to pay more. In some cases, they may have already initiated legal proceedings and would rather pursue a judgment instead of negotiating, so they may decide to refuse your payment instead. The debt has been escalated to legal action. If your account is already in litigation or has been handed off to a law firm, it may be too late to make casual payment arrangements. Once a lawsuit is filed or a judgment has been entered, you may have fewer opportunities to settle out of court unless it's done through formal negotiation. The payment source is an issue. In some cases, a debt collector may refuse payment due to issues with the source of funds, like if you're trying to pay from a third-party account or there are red flags about potential fraud. Or, some debt collectors may refuse to take a personal check and instead require certified funds like money orders or bank transfers to eliminate the risk of insufficient funds. How to get rid of collection debt quickly If you're dealing with an uncooperative debt collector, there are still ways to get out from under collection debt — and some can be faster and more affordable than you'd think. Negotiate smarter. If you're trying to settle for less and your first payment offer was rejected, all hope is not lost. Try coming back with a higher settlement offer or asking to speak with someone with more authority. Put your offer in writing and clearly state what you can pay and when. If you can offer a lump sum settlement, your chances of success usually go up. Work with a debt relief expert. Debt relief companies and credit counselors can negotiate on your behalf to try and get a debt collector to make a deal. They have relationships with creditors and debt collectors and know what kinds of offers typically get approved. With their help, you may be able to settle for less or at least get on a manageable payment plan. Consider a debt management plan. A credit counseling agency may be able to enroll you in a debt management plan. With this type of plan, the agency works with your creditors to try and lower your interest rates and consolidate your monthly payments into one. You pay the agency each month and they distribute the funds to your creditors, so you won't have to worry about the possibility of having your payments rejected. Consider whether bankruptcy is the best option. If your debt is overwhelming and none of the other options are realistic, filing for bankruptcy may be the fastest and most complete way to wipe out your collection debt. Chapter 7 bankruptcy, in particular, can eliminate qualifying unsecured debts in a matter of months. While it's a serious step with long-term credit consequences, it can provide a fresh start. The bottom line A debt collector refusing payment can feel frustrating when you're trying to take responsibility. But remember, debt collectors are playing a financial game, and you need a strategy to win it. Whether you renegotiate, seek expert help or pursue formal debt relief, there's usually a way forward. Just don't panic, and don't ignore the problem. The sooner you take action, the sooner you can put your collection debt behind you for good.
