What to do if you can’t afford your credit card payments this September

For millions of Americans, this September brings not just extra expenses, like back-to-school costs and rising grocery bills, but also another month of steep credit card payments. Part of the issue is that the average credit card APR is still hovering close to 22%, one of the highest levels in decades. And, total credit card balances nationwide surpassed $1.2 trillion this summer, a new record high, with delinquency rates climbing steadily in tandem. 

At the same time, inflation has been creeping up again over the last few months. As a result, a lot of people’s budgets are stretched thin, and when you add in how quickly credit card interest charges can compound at today’s rates, it can be tough to stay current on even the bare minimum credit card payments. But all it takes is just one missed credit card payment for your balance to snowball into late fees, higher interest charges and long-term credit score damage.

So, what can you actually do if you can’t afford your credit card payments this September? Ignoring the problem will only make things worse, but there are real options available. Below, we’ll examine a few viable ones worth exploring further.

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What to do if you can’t afford your credit card payments this September

If you’re worried about missing your credit card payments this September, these options could help keep the bills from piling up even further: 

Contact your credit card company immediately

Your first call should be to your credit card issuer, and you should make it before you miss a payment. Most major credit card companies offer hardship programs designed exactly for situations like yours. These programs aren’t widely advertised, but they exist because it’s often better for the company to work with you than to write off your debt entirely.

When you call, be honest about your financial situation. Explain what’s happening, whether it’s job loss, medical expenses, reduced income or just the cumulative effect of rising costs. Your card issuers may, in turn, offer solutions like reduced minimum payments, lower interest rates or payment deferrals. Some might even waive fees or create a modified payment plan that fits your current budget.

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Explore debt management and credit counseling

If your credit card company can’t offer enough relief, or if you’re juggling multiple cards, credit counseling might be your next best step. A credit counselor can help you create a realistic budget and may be able to negotiate with your creditors on your behalf to lower your fees or interest rates. 

And, they may also help you create a debt management plan, where you make one monthly payment to the counseling agency, and they distribute payments to your creditors. These plans often come with reduced interest charges, which makes your debt more affordable and allows you to pay off what you owe faster than you could on your own.

Consider balance transfer options carefully

If you have decent credit, a balance transfer to a card with a 0% introductory APR might buy you some breathing room. By moving your high-rate debt to a card where you won’t pay interest for a promotional period (often 12 to 21 months), you remove interest charges from the equation, meaning that every penny you pay during that time goes toward your principal balance.

This can make it a lot easier to get rid of your debt, but balance transfers do have some downsides to consider, too. For example, you’ll typically pay a transfer fee of 3% to 5% of the amount you move, and the promotional rate is temporary. If you don’t pay down the balance during the promotional period, you’ll be right back where you started, possibly with an even higher rate.

Consider what debt consolidation can offer

If you have multiple cards with high interest rates, consolidating that debt through a personal loan or a debt consolidation loan can help. When you consolidate your debt, the goal is to combine all your balances into a single monthly payment at a lower interest rate than your credit cards. This doesn’t erase what you owe, but it makes repayment more manageable and predictable. The fixed payment structure also means you’ll know exactly when your debt will be paid off.

Debt consolidation isn’t automatically the right choice for everyone, though. While it has its benefits, you’ll still need to qualify for a loan with better terms than what you currently have, and you must resist the temptation to run up new credit card balances once the old ones are paid off. If you’re not confident you can change your spending habits, consolidation could create a bigger problem down the road.

The bottom line

If you can’t afford your credit card payments this September, don’t panic, but don’t wait for a solution to appear, either. Today’s high interest rates mean balances grow quickly, and missed payments can damage your credit in lasting ways. The faster you take action, the more options you’ll have, whether that means working out a temporary arrangement with your card issuer, consolidating your debt or exploring other types of debt relief. And, by reaching out for help now, you can avoid the steepest consequences while putting yourself on a more stable financial path heading into the rest of the year.