Americans are racking up debt at a significant rate and Georgians are among those struggling to pay on time.
A recent study by the personal finance website WalletHub states that U.S. households have around $18.7 trillion in debt. Writer and Analyst Chip Lupo says they focused on which states had the most delinquent debt, or where people were behind on payments. Unfortunately, Georgians came in at number 12 on the list.
“The biggest problem you’ll face, or consequence is credit score damage,” according to Lupo. “When they report those late payments to the credit bureaus, that’s going to significantly lower your credit score, which would make it difficult to qualify for future loans, credit cards, mortgages. Sometimes even apartments and jobs.”
Delinquency can also result in late fees and higher interest payments.
Lupo says if you are already delinquent or on the verge of becoming delinquent, reach out to the lenders.
“Lenders, credit card companies, banks, do have hardship programs. You can negotiate a lower interest rate, lower payments, come up with some kind of a payment plan, or even a forbearance program, where they will suspend all your payments for X number of months. But the drawback is that the interest is still going to accrue."
Late payments recorded on credit reports stay there for seven years.
Analysts suggested applying for hardship programs, requesting lower interest rates or payments, and seeking forbearance programs to temporarily suspend payments.
