We live in a hectic world, and the last thing most of us need is one more thing stressing us out. But the truth is that a lot of everyday items and situations could be sources of anxiety — including your trusty credit card.
Luckily, there are easy ways to deal with tension caused by your plastic. Take a look at five common sources of credit card stress below, and our tips for getting past them.
1. You charged more than you can afford to pay off in one month
Overspending with credit cards happens to everyone from time to time. If you got slammed with a bill you don’t have the funds to pay off in full, you have a few options for avoiding interest charges:
- Use savings to pay it off.
- Rework your budget to accommodate the bill.
- Transfer the balance to a 0% card.
But only do the transfer if it’s a really big balance that would take longer than six months to pay off — otherwise, the balance transfer fee you’d pay probably isn’t worth it.
In the future, be sure to track your spending carefully to avoid a larger-than-expected bill.
2. You missed your payment due date
Forgetting to pay a bill on time can be embarrassing, but the first thing you should do if this happens is call up your issuer. Apologize for missing the due date and make arrangements for the payment — if this is your first offense and you’re only a few days late, they might even be willing to waive the late fee.
If you’re more than 30 days past due, there’s the possibility your late payment has already been reported to the three major credit bureaus. If so, don’t panic — pay what you owe (including interest and fees), and make it a priority to pay on time in the future. The mark will stay on your credit report for up to seven years, but as long as you keep making responsible moves, its effect on your credit score will lessen over time.
In the future, set calendar reminders for your due dates, or sign up to get text or e-mail alerts from your issuer when a payment is due.
3. You got hit with an unexpected fee
The CARD Act of 2009 went far in helping reduce unfair or unexpected credit card fees. But they do still happen. If a fee you weren’t expecting shows up on your credit card statement, it’s best to get in touch with your issuer for an explanation. There’s always the possibility you were charged the fee in error, which is why looking over your credit card statement carefully every month is key.
Assuming the fee is no mistake, you should explain to your issuer that you didn’t anticipate the charge; they might be willing to reverse it this one time. Either way, be sure to ask for a clear explanation of how it can be avoided in the future, and call this one a lesson learned.
4. Your card was involved in a data breach
If you recently shopped at a store that was involved in a breach, take a deep breath and relax — it’s possible that your data didn’t make it into the hands of criminals at all.
The best thing you can do is monitor your credit card account and await further instructions from your issuer. They may decide not to take any action, but if they feel your account is at risk, they’ll notify you about canceling your card. In this case, simply follow their directions and wait for your new card to arrive.
On the other hand, if you spot a sketchy transaction on your account, be sure to get in touch with your issuer immediately. They’ll likely cancel your card, and, according to the terms of the Fair Credit Billing Act (FCBA), you won’t be responsible for the fraudulent charge since it happened while the card was in your possession. Phew!
5. You got hit with an unauthorized charge
Speaking of unauthorized charges, this is another stressor your credit card could cause. If a charge you didn’t make shows up on your online account or statement, again, it’s important to notify your issuer right away. They may take some time to investigate, but keep in mind that the FCBA limits your liability for unauthorized charges to $50.
What’s more, that liability drops to $0 if the fraud happens while the card is in your possession, or you report the theft of your card before any charges are made. Plus, most credit card issuers have $0 fraud liability policies, so the chances that you’ll have to pay anything are slim.
It might be a little bit of a hassle to untangle, but just keep reminding yourself that an unauthorized charge isn’t your fault and you likely won’t be out any money in the end. That should bring some needed peace of mind!
Stressed woman image via Shutterstock
The post 5 Sources of Credit Card Stress — and How to Get Past Them appeared first on NerdWallet Credit Card Blog.
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