Have you missed enough credit card payments that your creditor has contacted you about your debt? If so, you aren’t alone.
According to survey results from the February 2019 PYMNTS.com Financial Invisibles Report, almost two in five (36.3%) respondents had been contacted by a creditor regarding an outstanding debt.
How did many of them resolve the situation? More credit. In the middle of 2018, the use of credit cards to pay off outstanding debts jumped substantially – from 44.6% in the second quarter to 61.8% in the third quarter.
By shuffling outstanding debt toward credit cards, consumers are using up more of their available credit – potentially dropping credit scores in the process and increasing the chances of higher interest charges and missed payments. If you couldn’t pay off your debts in full this month, what’s…