ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Notify the credit card companies in order to negotiate a new payment plan.
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Cut up the cards and put parts in different garbage bags.
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Ask his/her parents to make their payments.
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Stop making payments to the credit card companies.
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Detailed explanation-1: -A person has three credit cards with very large outstanding balances and is unable to make payments on any of them. Which action should the person take? Notify the credit card companies to negotiate a new payment plan.
Detailed explanation-2: -Act right away and call your credit card company if you believe you’re unable to pay the minimum payment on your credit card. Many credit card companies may be willing to help if you’re facing a financial emergency. You do not need to be behind on your payments to ask for help!
Detailed explanation-3: -stop using your credit card, if possible. avoid applying for a new credit card because you’ve reached your credit limit on other cards. look at your budget for ways to trim spending. if you have to use credit, consider other less expensive credit options.
Detailed explanation-4: -You make one payment 15 days before your statement is due and another payment three days before the due date. By doing this, you can lower your overall credit utilization ratio, which can raise your credit score. Keeping a good credit score is important if you want to apply for new credit cards.
Detailed explanation-5: -If you fail to pay your credit card bill on time, then you will have to incur various additional expenses like the late payment fee, hefty interest charges, etc. Regular defaulted payments may also lead to withdrawal of interest-free period, reduced credit limit and lower credit score.