You’re probably reading that title and thinking, “Hey! I can’t pay my credit cards, what am I supposed to do?”  Well, I’m hoping that I can help you with this post in order to get you on the right track.

It’s not the end of the world.  The first thing we want to look at are the consequences.  The worst thing that will happen is that you’ll have to declare bankruptcy.  Sure, it will be on your credit report for 7-10 years but it can be a lot worse.

Try your best.  I don’t care how much you’re making right now.  I want you to make a goal of at least paying the minimums on each credit card.  If you can transfer them all onto a low interest card, that’s great.  If not, look at the minimums on each card and try to pay off at least the minimum.

Work your way down.  Get a notepad and start writing down what you owe to who.  I don’t care what it is.  From student loans to credit cards, you’ll want it to look something like this –

  • Credit card A — $6,000 balance, 13.99% APR
  • Credit card B — $3,500 balance, 16.99% APR
  • Credit card C – $850 balance, 19.99% APR

Now, let’s say that’s your notepad up there.  Once we have written down every balance you owe, we will want to proceed to pay off the highest interest rate first.  So with the example, we will pay the minimums on A and B and put as much as possible toward C.  Once C is paid off, we rinse and repeat with A and B.

Get another job.  Yeah, the economy is in the toilet, I understand but if you’re not working two or three jobs right now, I don’t feel sorry for you.  Get off your butt right now and get a job anywhere.  Remember, McDonald’s is always hiring and NO job is above you.  Get out there, make a few extra hundred bucks a month and put it toward your debt.  Don’t use the excuse that there are no jobs out there.

Settle for less.  If you haven’t done so already, try and call up the credit card companies and ask them what they can do with your balance.  Explain your situation to them and tell them that you want to work something out.  Depending on the card company, they will more than likely figure out a plan to get you to pay it off on time.

It isn’t the end of the world when it comes to not paying your credit cards.  Try some of the steps mentioned above.  If you can work your butt off and take action, great things will be ahead like no debt.  Good luck!