Between today's high rates, elevated prices and uneven job market, it's getting harder for borrowers to stay current on their payment obligations, particularly when it comes to their
.
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it → get → their
After all, budgets have been stretched thin by the numerous challenges looming, making it increasingly difficult to cover both the essentials, like housing and food, and the monthly payments on high-rate debts.
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it → stretch → debts
If you fall behind on your credit card debt, though, it can be surprisingly difficult to catch up, particularly once the are added in.
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the → fall → debt
And, once an
, the window for resolving the delinquency can start to narrow.
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window → resolve → delinquency
That can leave you with a tough choice: You can put whatever money you have available toward the overdue card, even if it isn't enough to cover the full amount due, or use that cash for other pressing expenses while you figure out a long-term solution.
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you → leave → solution
But while sending in a partial credit card payment may seem preferable, when a , the amount you pay matters.
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you → send → payment
So, can making a partial credit card payment keep a charge-off from occurring, or is it too late to take that approach?
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it → make → approach
Knowing the answer to this question can help you decide what to do with the money you have available.
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you → know → money
Can making a partial credit card payment prevent a charge-off?
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making → make → off
If you're several months behind on your credit card payments, sending whatever you can afford to your credit card issuer may seem like a logical way to keep the account from being charged off.
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you → send → account
A partial payment doesn't necessarily stop that process, though.
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payment → stop → process
That's because
generally isn't determined by whether you've paid something toward the account.
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you → determine → account
What matters is whether you've paid enough to cover the amount required to bring the account sufficiently up to date.
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you → matter → date
Federal banking guidance generally calls for open-end credit accounts, including credit cards, to be charged off when they reach 180 days past due.
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they → call → cards
So, if you're several payments behind and send $100 toward the balance, that money will reduce what you owe.
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you → send → what
But if the payment isn't enough to address the past-due amount, your account can remain delinquent and continue
.
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account → address → amount
In other words, making a small payment doesn't automatically restart the delinquency timeline or give you another 180 days to resolve the issue.
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making → make → issue
That distinction becomes especially important as you get closer to the charge-off date.
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you → become → date
Instead of sending an arbitrary amount and assuming it will protect the account, it makes sense to contact your card issuer and ask what you would need to pay to change its delinquency status.
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you → send → status
The amount could be significantly higher than
if you've already missed several.
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you → miss → several
If you can't afford that amount, it's also worth asking whether the issuer offers another way to get the account back on track.
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issuer → afford → track
Some credit card companies offer
that can temporarily reduce payments, lower interest rates or otherwise adjust repayment terms for borrowers experiencing financial difficulties.
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that → offer → difficulties
Depending on the program and your situation, entering into an approved repayment arrangement may give you a more realistic path forward than making occasional partial payments on your own.
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entering → depend → own
The important thing is to address the problem before the account reaches the charge-off stage.
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account → address → stage
A charge-off doesn't eliminate the debt; you can still owe the balance afterward, and the creditor may continue collection efforts or
to a debt collector.
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creditor → eliminate → collector
So, if you have limited money available, finding out exactly what your card issuer requires before making a payment can help you use those funds more strategically.
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you → have → funds
What if you can't afford enough to stop the charge-off?
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you → afford → off
If you've reached the point where you can't make the payments required to get your account back on track, it may be worth looking beyond one-off partial payments.
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it → reach → payments
Putting $50 or $100 toward the balance periodically can reduce the debt somewhat, but it may not solve the underlying problem if the account remains severely delinquent.
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account → put → problem
As noted above, one option is to ask your issuer about a
.
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option → note → a
Depending on what's available, enrolling in one could result in a lower monthly payment, a reduced interest rate or another type of temporary accommodation that makes repayment more manageable.
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repayment → depend → accommodation
This can be especially useful if your financial setback is temporary and you expect to resume regular payments later.
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you → expect → payments
If your financial problems are more significant, you could also benefit from exploring
.
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you → benefit → ?
A credit counseling agency, for example, may be able to place your eligible unsecured debts into a with more manageable repayment terms, including reduced interest rates and fees.
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agency → place → rates
Or, it could make more sense to pursue
, also known as , especially if you can't reasonably repay your credit card balances in full.
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you → make → balances
With this approach, you or a you work with attempts to negotiate with creditors to agree on a settlement that's less than the total balance owed.
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that → work → balance
The key is to compare those and your other options before an overdue balance gets further out of control.
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balance → compare → control
If you have money available for a partial payment, find out whether that payment will actually improve the status of your account or whether those funds would be better used as part of a formal repayment or debt relief strategy.
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funds → have → repayment
The bottom line
Making a partial credit card payment can reduce your outstanding balance, but that alone may not prevent the account from eventually being charged off.
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that → make → account
If the payment isn't enough to change the account's delinquency status, the issuer may still move toward charge-off as the account approaches the applicable deadline.
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account → change → deadline
…and 2 more, not listed.
The Aporia
