Weathering the Storm: Avoid Delinquencies!
Saturday, August 29th, 2009Bank delinquency rates have gone up every quarter this year and are currently higher than they have been they began collecting data over 20 years ago. When individuals as well as businesses begin to struggle to make their payments timely, another wave of economic backlash usually soon follows. Some things may give the appearance of improved economic conditions but it may also be the illusion of a little calm before the next storm.
As unemployment continues to increase, prices for goods and services climb higher and companies already suffering begin further tightening of their proverbial belts by holding off on merit or cost of living increases, consumers find they have to resort to credit for basics like food and gasoline. When conditions don’t improve, the delinquencies on those credit charges begin to mount. Another wave of foreclosures are already predicted in the coming months so we do we begin to actually ‘turn the tide’ on this recession?
For any consumer reading this, please be proactive with your credit and don’t get delinquent. Make minimum payments if you have to but make them on time to protect your credit rating. It’s better to have some credit build up than to have your credit history ruined. If you are already delinquent, call your creditor and ask for a payment modification, even if it’s temporary, to help restore a good payment history. Unnecessary late charges, even if late payments aren’t reported on your credit history, just cost you more money. Pay timely and avoid the extra 5 to 20 percent late fee companies charge. If left with little other alternative when money is tight consider a part-time job to help cover expenses. Many ‘work at home’ jobs are available now for those that would have child-care issues.
The tide will eventually turn and economic conditions will improve. You’ll get a raise, a better job, costs of goods and services will go down and life will feel a little less frantic. Protect yourself, your family and your credit by avoiding delinquency and you’ll weather the storm well!