Many consumers and financial experts alike consider credit cards to be necessities these days. They’re helpful for purchasing items when cash isn’t immediately available and can be immeasurably valuable in emergency situations. It’s also only fair to point out credit cards help bolster borrowing power in certain scenarios as well.
The credit card uprising is getting out of hand in many cases. Some are being burdened by the sheer amount of debt being racked up while others are simply struggling to keep up with their monthly payment dates. This leaves many looking foradditional hints and advice to help resolve the issue.
Delving into the Current Dilemma
It seems most Americans have credit cards at present. Of those who have at least one in their wallets, an estimated 55 percent have at least some level of associated debt. Virtually all businesses need credit cards to survive in today’s corporate landscape. For them, current debt levels are even more prominent. While this type of financial obligation is necessary, it’s becoming a major problem for some.
Reports are showing credit card debt to be on the rise, and they’re indicating late payments are on an upward trend as well. In fact, accounts with payments two months late or more have been steadily increasing for the last five years. Analysts expect the numbers to continue along these lines during the years to come. As noted via a recent article entitled “Credit Card Late Payments Are on the Rise — 5 Ways to Make Sure,” this is causing a wide range of issues.
Why Are Late Credit Card Payments Such a Problem?
One of the most significant problems with late or missed credit card payments is the extra expense generated. Late fees have a way of adding up, and the amount of extra interest accruing takes this debt to entirely new levels. According to RealtimeCampaign.com and various online financial resources, late payments also have detrimental impacts on credit scores and future borrowing power.
Finding a Solution
People are coming up with a few creative ways to keep up with their monthly credit card payments particularly in cases where multiple cards are on hand and each one has a different due date. Some adhere to the old ways of simply marking those dates on the wall calendar. Others resort to spreadsheets and prompting their phones to notify them a few days in advance. Virtual assistants also enter the mix. Specialized due date tracker alternatives have been developed as well.
For those who choose the more technical route for keeping up with credit card payments, several options are available. Many financial institutions and credit card providers offer a text or email alerts to help remind cardholders of their upcoming payments. Businesses often find solace in customized software applications like JetPack Workflow. Such solutions help companies keep track of pending financial outlays, areas in which spending may be wasteful and other matters of concern.
At the End of the Day
Credit card debt is on an upward trend for consumers and businesses alike. One recent write-up shows this type of debt surpassed the $1 trillion mark in America alone earlier this year. It’s probably going to reach new heights during the coming years.
Keeping up with all those monthly payments may not be a simple matter. This is particularly true for businesses because of the countless other details to constantly be kept up with. Still a wide range of solutions are available to help make things a bit less complicated.