Options If You Can’t Pay Credit Card Minimum Payments
- If you can’t pay your credit card minimums, contact your credit card company as soon as possible.
- Your creditors may offer hardship programs that delay payments or reduce fees.
- Consider debt relief if financial hardship makes it impossible for you to pay what you owe.
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Sometimes your money doesn’t stretch far enough to pay the bills and meet your credit card minimums, especially if you’ve lost a job, had your hours reduced at work, or are dealing with a serious medical condition.
You’re not alone if you’re struggling to pay credit card minimums. You still have options that can help you get to a better place with your finances. And the sooner you act, the more options you'll have at your fingertips.
Here's what to do when you realize you can't meet your minimum payments—and what your options may be going forward.
What Happens When You Miss a Credit Card Minimum Payment
The consequences of a missed credit card payment depend on whether you eventually make your payment or if you continue to miss payments. To start, if you're more than a day or two late you'll probably be hit with a late payment fee.
If you still don't pay, then the consequences can get worse. The missed payment could be reported on your credit history after it's 30 days past due. And after 60 or more days from when you missed a payment, your credit card issuer may reduce your credit limit or even close your account.
You could potentially avoid any credit damage if you can catch up within 30 days of your due date. You might actually have more time than that—some lenders don’t report late payments to credit bureaus until they’re 60 days past due, though that varies a lot by creditor.
Even if a late payment goes on your credit report, you may be able to get it removed. If the late payment was a one-time error and you have a good history with the credit card issuer, start by getting your account current. Then, you can contact your issuer and ask them to remove the negative item (it's not a guarantee, it's at their discretion).
If you can't catch back up, you’ve still got choices for addressing the situation.
Steps to Take When You Can't Pay Your Credit Card Minimum
If you know you’re about to miss a credit card minimum payment, take action early. The earlier you contact your credit card company, the more likely you are to fix the problem without serious consequences.
Consider these steps to address the issue.
Contact your credit card company
Contacting your credit card company as soon as possible is always the first step. In fact, if you know you're going to be late, you should contact them before you miss a payment. This could help you avoid a lot of unpleasantness altogether. Even if you've already missed a payment, the sooner you contact them, the better.
Here are a few details to share with your credit card company:
Why you can’t pay. Be open and upfront. If you’re short on cash, had an unexpected expense, have a paycheck that's slow to arrive, are missing money from your bank account because of an error, or are otherwise having trouble, tell your credit card company about it.
How much you can afford. Can you make a partial payment, even if it’s a few dollars? If so, offer to do that. Tell the credit card company how much cash you have available for a payment. They might work with you.
When you can resume normal payments. Is your cash crunch temporary? Can you get back to your normal payment schedule next month? If you think you’ll only miss one payment, tell them that. But if you’re having more serious financial hardship, you might need more long-term help.
Credit card companies typically prefer to work with customers to find a solution than to jump straight to the more expensive options. Contacting your credit card company as soon as possible shows you're actively working to make things right.
Ask about hardship programs
Many credit card companies offer hardship programs for customers facing temporary financial challenges like job loss, illness, or unexpected expenses. If you qualify for this kind of relief, your issuer might waive your late fees, temporarily reduce your interest rates, or lower your minimum payments. Credit card forbearance is another option that could pause and defer payments.
Credit card hardship programs and forbearance aren’t the same as debt forgiveness—you still owe the money. But this kind of temporary credit card debt relief program could help you recover from a financial setback and resume payments from a stronger position.
Before you agree to a credit card hardship program, make sure you understand what happens when the program ends. Will you owe additional interest? Are you confident you can afford to resume payments?
Ideally, getting help with missed credit card payments should leave you in a better financial situation so you can afford to pay the bills again. But if you have to get caught up on interest and deferred payments in a way that is unaffordable for you, it might be better to pursue other debt relief options.
When to Consider Professional Debt Relief
Temporary credit card debt relief, such as credit card forbearance, is often the best choice for short-term financial challenges. If you have one or two months of unusually low income or unexpected extra costs, you might be able to get to the other side with just a little help from your credit card company.
But if your financial challenges are more serious and longer-lasting, professional debt relief might be worth considering. Here are a few signs debt relief could be the next step.
You're facing long-term financial hardship
Many people seek professional debt relief because of a major financial problem like long-term unemployment or a serious medical crisis in the household. Financial hardship is not just a one-month challenge to your budget—it’s an upheaval in your life that seriously derails your finances.
You can’t afford to fully repay your debts
If you genuinely intended to repay your debts, but financial hardship makes this impossible, professional debt relief may be a good fit. Debt settlement programs could help you get rid of debt faster than minimum payments and for less than you owe.
Creditor programs do not provide enough relief
Pausing payments can be a good solution for people who are facing a short-term financial challenge. But if your debt is too big to repay or your financial hardship is too great, creditor-offered programs might not be enough to move the scales. Professional debt relief, such as debt settlement, may help you achieve debt reduction beyond the scope of typical creditor programs.
You’re having trouble managing multiple accounts
A financial setback that interferes with one credit account could be dealt with through a creditor program. But if you're falling behind on multiple debts at once, help from one creditor may not be enough to make a difference.
Professional debt relief programs typically allow you to enroll more than one debt at a time. This could help you deal with multiple overdue credit cards in a way that's more affordable than making minimum payments. Successful debt settlement negotiations could allow you to get rid of multiple debts for less than you owe in total.
A free debt evaluation could help you decide if professional debt relief is the right approach for your situation.
How to Avoid Missing Future Credit Card Payments
Once you get past the challenge of a missed credit card minimum, it's time to address the root cause of the problem so it doesn't happen again. With a few careful plans and deliberate actions, you can strengthen your personal finances for the long run.
Here are a few ideas for getting your finances in better shape so you can avoid missing credit card payments in the future.
Lock down your spending
Now is the time to get tough on your budget. This doesn’t mean you have to deny yourself everything good. Just make every dollar work for you.
A few ways to get serious about cutting expenses:
Use a budgeting app. There are many useful budgeting apps that can help you see where your money goes. You don’t have to do a lot of extra work—just sign up for an app that automatically tracks your spending. For examples, check out this list of best apps to pay off credit card debt. Some are free, and some require a fee.
Cut unused subscriptions. Once you know where your money is going, you might be surprised at how much you spend on subscriptions and memberships. What if you could save $100 a month by streamlining your media subscriptions? Consider rotating services instead of subscribing to multiple at once.
Cook seasonally, at home. Shop according to seasonal availability and sales, then cook meals at home as often as possible. Make cooking your hobby, potentially replacing a more expensive way to spend your free time.
Reduce impulse buys. Remove your credit cards from shopping sites and apps to avoid easily adding to balances.
Use drastic measures to increase your income
If you’re in serious financial hardship, boosting your income may be the best long-term solution. These drastic moves might put more dollars in your bank account:
Get a side hustle. Handyman around town, mow lawns or move snow for neighbors, or drive for a rideshare / delivery app. Or get a more traditional part-time job at a retail shop or wait tables on the weekends. Whatever fits your schedule and adds money to your wallet.
Ask for a raise or switch jobs. If you haven't received a raise in a while and can show how you benefit the company, it might be time to ask. Or consider looking for a new role with a better salary.
Rent out space in your home. Do you have an extra bedroom? Consider taking in a roommate. Ask around with your friends and extended family to see if anyone knows someone looking for a place to rent. This could help you cut your housing costs.
Move in with family. There’s nothing wrong with moving in with Mom and Dad, especially if you’re in serious financial hardship. Cutting your living costs could help you get rid of debt faster—and bring your family closer together.
What to Do When You Can’t Make Minimum Card Payments
Even if you’re having financial trouble and can’t pay credit card minimums, know that help is available. Taking action and making proactive choices are the best first steps to improve your financial life.
Here are two steps that you might consider taking right now:
Call your credit card company. Tell them the situation and ask about forbearance and hardship programs.
Get a free debt evaluation. If you can’t get enough help from your credit card company or if you want to understand other options for debt relief, get a free debt evaluation with Freedom Debt Relief.
Missing a credit card payment doesn’t have to lead to big problems. Instead, you can make this moment the start of a brighter future for your finances.
Author Information
Written by
Ben Gran
Ben Gran is a personal finance writer with years of experience in banking, investing and financial services. A graduate of Rice University, Ben has written financial education content for Business Insider, The Motley Fool, Forbes Advisor, Prudential, Lending Tree, fintech companies, and regional banks like First Horizon.
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
What happens if you don't pay the minimum payment on a credit card?
If you can’t pay the credit card minimum payment, you’ll likely owe a late fee and possibly interest penalties as well. After 30 days, your missing payment could be reported to credit bureaus. After 60 days, you could face other consequences, like having your credit limit reduced or getting your account closed by the credit card issuer.
Can my credit card company sue me for missed payments?
Yes, but credit card debt lawsuits usually don’t happen quickly. A debt typically is 180 days or more overdue before credit card companies or debt collectors sue for unpaid debt.
Will one missed payment ruin my credit score?
Not necessarily. Late payments aren't reported to the credit bureaus until they're at least 30 days past due, so you have time to catch up before it hits your credit. Even if it's reported, you could potentially get it removed if you catch up quickly and contact your creditor.
How a late payment impacts your credit score will depend mostly on the state of your credit at the time. One late payment on your credit report will hurt more if you have excellent credit than it would if your credit is already struggling.
In either case, credit scores are fluid and your credit isn't ruined forever. The impact from a late payment will fade over time, and it should fall off your reports completely after seven years. In the meantime, focus on paying your bills on time every month to minimize the impact.
What should I say when I call my credit card company about a missed payment?
Tell them why you’re missing the payment, how much you can afford to pay, and when you expect to resume normal payments. Be apologetic and polite, and remind them of your previous history as a reliable customer with on-time payments. The sooner credit card companies hear from you, the more willing they may be to help.