4 Steps to Take if You Can't Pay Your Credit Card Bill

With credit cards, it's best to pay off your full balance by the due date every month. When you do this, you get to take advantage of all the perks that credit cards offer, including rewards and purchase protections. And you won't be charged any interest on your purchases.

If you can't pay off your card's full balance, you can pay less. Minimum payments on credit cards are normally about 1% to 2% of the balance. It's not good to get into the habit of only paying the minimum, but in a pinch, it at least keeps you current on the account.

But what if you can't make your minimum credit card payment, either? That's a serious problem. Your card issuer can charge you a late fee for missing a payment, and not paying can eventually cause your credit score to drop. Here are the steps to take if you can't pay your credit card bill.

1. Get strict about your spending

Not paying your credit card is a financial emergency. The longer it takes you to get caught up, the more it will cost you in fees, and the more damage it does to your credit score.

Because this is an emergency, you should do everything in your power to resolve it. Cut spending wherever you can. Here are a few ways to do this:

• Cancel subscription services, such as Netflix, Spotify, and Amazon Prime.
• Spend less at the grocery store. Look for budget-friendly meals, and buy cheap ingredients in bulk.
• Go rate shopping for your car insurance and homeowners/renters insurance.

It's not going to be fun, but keep in mind that this is temporary. Once you have your credit card debt paid off, you can relax more with your spending, as long as you don't overspend and end up in the same position.

2. Look for ways to make some quick cash

There are plenty of ways to earn extra money that you can put toward your credit card bill. The most convenient is asking if you can pick up some extra hours at work. If overtime isn't an option, look for a side hustle. Here are some services you could try:

• Driving for rideshare companies, such as Uber and Lyft
• Offering dog walking or pet sitting services -- Rover is a popular platform for this
• Doing deliveries through DoorDash, Uber Eats, or Postmates
• Renting out a room in your home on Airbnb

If you make an extra $50 to $100 each week, that could be enough to make your credit card payment, and start chipping away at your debt.

3. Work with a credit counselor

A credit counselor can review your finances with you and help you make a plan to get out of debt. If necessary, they can also contact your credit card issuers on your behalf and help negotiate better terms, such as a lower interest rate.

You can find credit counseling services in your area through the following nonprofits:

• National Foundation for Credit Counseling (NFCC)
• Financial Counseling Association of America (FCAA)

4. Reach out to your credit card issuer

Lots of people worry about calling their card issuer when they're having payment issues. You shouldn't. Your credit card company may be able to help. And it has good reason to do so -- it's better for your card issuer if you pay what you can than if you don't pay anything.

Call the number on the back of your credit card, explain that you aren't able to make your full minimum payment, and ask what your options are. Your card issuer may be able to lower your minimum payment or reduce the interest rate on your credit card.

It's stressful when you don't know how you'll pay your credit card, but there are ways out. You'll probably need to make some serious cuts to your spending. You may also need to pick up a side hustle and work with a credit counselor or your card issuer. If you work hard at it, you'll be able to get caught up on your credit card payments and start paying down what you owe.