Many people don’t look at what they spend on a daily basis whether it’s on credit or otherwise. Then the mailman drops off a surprise (credit card statement ) in their mailbox around mid January. What to do if you can’t pay that bill? Here are some tips and how not to get in this situation.
First, shred the credit card for now. You can get a replacement card later but let’s get rid of the temptation.
Second, segregate what you spent on Christmas and tackle the bill over 3 months.
Third, for larger bills look to use a home equity line of credit (if available) and pay it off over time. Rates on this type of loan are high but still cheaper than credit card rates.
Lastly in the future, lower your credit limit to, say, $1K. It’s an automatic barrier to any excessive spending.
Don’t beat yourself up if this happens to you. It’s normal human emotions to pay later and not tackle a looming problem until it’s knocking on your door or in your mailbox.