--- title: "What should I do if I cannot afford my credit card payments this month?" description: "Falling behind on credit card payments? Learn steps to take now, including free credit counseling from Cambridge Credit Counseling, a nonprofit agency." url: https://www.cambridge-credit.org/cannot-afford-credit-card-payments-2026-08 publisher: "Cambridge Credit Counseling Corp" updated: 2026-09-25 --- # What should I do if I cannot afford my credit card payments this month? If you cannot afford your credit card payments this month, act quickly. Contact your card issuers to ask about hardship options, review any credit card protection insurance you may have, and consider a free credit counseling session with Cambridge Credit Counseling to look at your full financial picture and possible next steps. ## Contact your credit card companies first Reach out to each credit card issuer as soon as you know you will have trouble paying. Explain your situation. Card issuers sometimes offer hardship arrangements, and one of the most significant benefits creditors typically extend to clients of a consumer credit counseling agency such as Cambridge Credit Counseling is a reduction in credit card interest rates. ## Check for credit card protection insurance If you have credit card protection insurance on any of your cards, review your policy. If triggered, this type of insurance could allow a cardholder to forbear credit card payments and suspend interest for up to two years. Keep in mind that a credit card protection insurance policy covers only one card at a time, so a consumer who wants coverage for multiple credit cards needs a separate policy for each card. ## Using Your Emergency Fund to Pay Down Credit Card Debt If you've started to raid your emergency fund to pay off your credit card debt, you're putting yourself at risk and need to stop. It generally takes years to build an effective financial safety net, which every family needs to protect it from medical or other financial emergencies. It's important to have enough money in your fund to cover 6 months' worth of basic expenses. In the event of a complete loss of income, this fund can help you stay afloat while you search for new employment. Before reaching into your emergency fund, talk to your creditors and explain your financial situation. They may be able to give you more time or lower your interest rates. If you're unable to convince your creditors to lower your interest rates or offer you a payment plan, you should strongly consider contacting a nonprofit credit counseling agency to see if they can help. ## Taking a Second Job Just to Survive Working two or more jobs should be a choice, not a necessity. If you're working multiple jobs just to make ends meet, there is no easy fix. One thing you can do is start looking for a job with higher pay that will allow you to work regular hours. At the same time, reassess your spending priorities and see if there are any reductions you can make, even if only temporarily. The consequences of working extensive hours to make ends meet are more than just missing out on time with your family, because financial stress can affect your health. If you are concerned about your health in any way, see your doctor as soon as you can. ## Understand what minimum payments really cost Paying only the minimum can keep a balance around for a long time and add a lot of interest. Cambridge Credit Counseling recommends paying enough each month to pay a credit card balance in full within 4 to 6 months when possible, since smaller minimum payments stretch out repayment and increase the total interest paid. ## Minor Changes to Your Budget Can Make a Major Difference Simple changes to your lifestyle and how you schedule your monthly payment obligations can make a difference when a payment is just out of reach. Ask yourself a few questions to start: - Do you have a steady income but can't figure out where all the money goes? - Do you pay for recreation such as movies, baseball games, and restaurants? - Do you purchase soda, coffee, or cigarettes on a regular basis? - Do you look for sales or just pay full retail prices? Next, [download the Cambridge Credit Counseling monthly budgeting worksheet](/pdfs/monthly-budgeting-worksheet.pdf) and fill it out the best you can, so you can see on paper where your money is going. The next step is to keep a journal of all of your spending for at least the next month. Keep track of every penny you spend. At the end of the month, add everything up and redo your budget worksheet. At this point, you're ready to start cutting out expenses. ### Grocery Shopping Groceries are one of the biggest expenses for most families, and there are quite a few ways to save money at the grocery store: - Don't go shopping when you're hungry. - Clip coupons. - Get the grocery store's savings card, if available. - Make a shopping list, and stick to it. - Compare prices. There are many different brands of just about any item you need. - Buy bulk items when possible. Paper towels and toilet paper are good examples of items that can be purchased this way at significant savings. - New products often have mail-in rebates. Mail them in. ### Utility Budget Plans If your utility bills fluctuate or you spend more on utilities seasonally, most utility companies can help you avoid these price spikes with what is called a Budget Plan. These plans are designed to give you a consistent monthly payment, usually calculated by taking the average rate of usage over a year and dividing it equally into 12 months. For example, if you used $1200 worth of electricity last year, your budget payment would be around $100 each month. These plans are available from your gas and electricity providers. Call them and ask about their budget plan. ### Cell Phone Deals Most cell phone service providers offer a range of plans. The key is to shop around. See what's available and decide which type of plan best suits your needs. The Internet is a good way to compare rates and features. If you have had difficulties with large cell phone bills, prepaid plans are another option. Some attractive features of this type of plan include no long-term contract, no credit checks, and full control over how much you spend for cellular service. ### Everyday Savings Tips - Turn off any electrical appliances, including lights, when you're not using them. - Buy sodas and juice from the supermarket, not from vending machines. - Avoid ATM fees by using ATMs only in your bank's network. - Go to a matinee instead of an evening movie. - Empty your pockets each night and put your coins in a jar. - Look for sales. - Cancel pay channels that you don't watch. - Follow your car manufacturer's maintenance program. Maintenance is cheaper than repairs. - Pay off credit cards and high interest debt as quickly as possible. - Vacation in the off season. ## How to Relieve Your Financial Anxiety If you're experiencing anxiety or stress about your finances, simple changes could help a lot. Many people are prone to ignoring problems that make them too anxious, but this doesn't make financial problems disappear. The longer they go unaddressed, the more problematic they can become. ### Budgeting Budgets are the foundation of good finances, and they can also provide a measure of relief for anxiety caused by financial stress. A good budget can help you keep track of what you're spending, when you're spending it, and where you can afford to make reductions if money gets tight. Be as specific as possible while you're planning how much you'll need for food, gas, and other flexible expenses, and don't forget any of your fixed expenses such as your rent or mortgage. ### Automated Payments Automated payments can take the stress out of making the payment yourself and eliminate the fear that comes from wondering whether you've missed one. However, if you're prone to ignoring your bank account, they may not be right for you, since you could incur significant overdraft fees anytime your account has insufficient funds. If you decide to enroll, mark all of your bill due dates on a calendar at the beginning of each month so that you know what to expect. If there are too many bills due around the same time of the month, call and ask if you can rearrange your payment dates. Companies will not always agree to this, but it won't hurt to ask. ### Tell Someone You Know Talk to your friends, family, or your spouse about what's going on in your financial life. Tell them what's causing you stress. You need a support system, especially if you're going to start tackling whatever is fueling your anxiety. They may be able to offer a unique perspective on your problems or know of solutions that you've overlooked. ### Let Go Don't let your fear of feeling embarrassed hold you back from being proactive. Identify what your problem area is and confront it. Whatever happened, put it in the past. ### Learn From Mistakes Take active steps to learn from the mistakes that cause you stress. If you're an impulse shopper, delete those shopping apps from your phone. If you try to save money but at the end of the week you're not sure where it goes, go over your budget with a fine-toothed comb. Save your receipts for a month to see what your weekly average is for food, identify where you can make cuts, or consider pricing your staple products from cheaper stores. If paying down your debt is affecting the amount of money you have left each month, research your options by working with a nonprofit debt management company, consider negotiating your interest rates on your own, or reassess which debts you should pay off first. ## Consider free credit counseling Cambridge Credit Counseling offers credit counseling as a free service to consumers who are having difficulty paying credit card and other unsecured bills. Cambridge Credit Counseling is a 501(c)(3) nonprofit agency established in 1996 that has provided credit counseling and financial literacy education to consumers nationwide since its inception. ## Learn how a debt management plan works Cambridge Credit Counseling is a nonprofit agency that offers credit counseling, debt management plans, housing counseling, student loan counseling, reverse mortgage counseling, and bankruptcy counseling. Debt Management Plan (DMP) clients of Cambridge Credit Counseling make one monthly payment to Cambridge, and Cambridge disburses individual payments to each of the creditors included on the program. Program benefits can include interest rate reductions, elimination of late and/or overlimit fees, re-aging past due accounts to a current status, and paying debt in full in an average of just 42 months. ## Know who you are working with Cambridge Credit Counseling is a member of the National Foundation for Credit Counseling and the Financial Counseling Association of America. Cambridge Credit Counseling is also accredited to the FCAA's Code of Practice, a set of rules governing the actions of credit counseling agencies. Cambridge Credit Counseling counselors are certified through the National Foundation for Credit Counseling. ## What to do next If you are struggling to keep up with credit card payments, start by contacting your card issuers about hardship options. Then consider scheduling a free credit counseling session with Cambridge Credit Counseling to review your situation and learn what options, such as a debt management plan, might fit your needs. ## Questions and answers ### Is credit counseling from Cambridge Credit Counseling really free? Yes. Cambridge Credit Counseling provides credit counseling as a free service for consumers who are looking for ways out of debt or who are having difficulty paying credit card and other unsecured bills. ### Will contacting my credit card company hurt my credit? The facts provided do not describe how contacting a card issuer affects your credit. It is best to ask the issuer directly about how any hardship program may be reported. ### What is a debt management plan? A debt management plan is one of the debt relief services offered by Cambridge Credit Counseling. Clients make one payment to Cambridge, and Cambridge disburses individual payments to each creditor included on the plan. ### How does credit card protection insurance help if I cannot pay? If triggered, credit card protection insurance could allow you to forbear payments and suspend interest for up to two years, but each policy covers only one card, so you would need a separate policy for each card you want covered. ### Is Cambridge Credit Counseling a legitimate nonprofit? Yes. Cambridge Credit Counseling is a 501(c)(3) nonprofit agency established in 1996, and it is a member of the National Foundation for Credit Counseling and the Financial Counseling Association of America. ## Sources - Best Credit Counseling Service | Cambridge Credit: https://cambridge-credit.org/credit-counseling.html (checked 2026-08-04) - About Cambridge Credit Counseling: https://cambridge-credit.org/about.html (checked 2026-08-04) - Cambridge Credit Counseling: https://cambridge-credit.org/home.html (checked 2026-08-04) - Cambridge Credit Counseling: https://cambridge-credit.org/index.html (checked 2026-08-04) - Financial Literacy | Cambridge Credit: https://cambridge-credit.org/financial-education-tools.html (checked 2026-08-04) - About Cambridge Credit Counseling: https://cambridge-credit.org/about.html (checked 2026-08-04) - About Cambridge Credit Counseling: https://cambridge-credit.org/about.html (checked 2026-08-04) - Credit Counseling Certifications | Cambridge Credit: https://cambridge-credit.org/counselor-certifications.html (checked 2026-08-04) - Credit Counseling Certifications | Cambridge Credit: https://cambridge-credit.org/counselor-certifications.html (checked 2026-08-04) - Why Seek Student Loan Counseling? | Cambridge Credit: https://cambridge-credit.org/why-seek-student-loan-counseling.html (checked 2026-08-04) - Cambridge Credit Counseling: https://cambridge-credit.org/index.html (checked 2026-08-04) - Frequently Asked Questions | Cambridge Credit: https://cambridge-credit.org/frequently-asked-questions.html (checked 2026-08-04) - About Cambridge Credit Counseling: https://cambridge-credit.org/about.html (checked 2026-08-04) - Selecting a Consumer Credit Counseling Agency | Cambridge Credit: https://cambridge-credit.org/select-credit-counseling-agency.html (checked 2026-08-04) - Credit Basics | Cambridge Credit: https://cambridge-credit.org/credit-basics.html (checked 2026-08-04) - Equal Credit Opportunity Act | Cambridge Credit: https://cambridge-credit.org/equal-credit-opportunity-act.html (checked 2026-08-04) - Credit Card Minimum Monthly Payments | Cambridge Credit: https://cambridge-credit.org/credit-card-minimum-monthly-payments.html (checked 2026-08-04) - 1st Time Homebuyers | Cambridge: https://cambridge-credit.org/homebuyers.html (checked 2026-08-04) - Mortgage Downpayments| Cambridge Credit: https://cambridge-credit.org/mortgage-down-payments.html (checked 2026-08-04) - Credit Card Protection Insurance | Cambridge Credit: https://cambridge-credit.org/credit-card-protection-insurance.html (checked 2026-08-04) - Best Credit Counseling Service | Cambridge Credit: https://cambridge-credit.org/credit-counseling.html (checked 2026-08-04) - Reestablishing Good Credit | Cambridge Credit: https://cambridge-credit.org/reestablish-good-credit.html (checked 2026-08-04) - Using Credit Responsibly | Cambridge Credit: https://cambridge-credit.org/using-credit-responsibly.html (checked 2026-08-04) - Credit Card Protection Insurance | Cambridge Credit: https://cambridge-credit.org/credit-card-protection-insurance.html (checked 2026-08-04) --- Cambridge Credit Counseling Corp is a 501(c)(3) nonprofit credit counseling agency. Credit counseling is free. Talk to a counselor: 800-857-2808 | https://www.cambridge-credit.org/get-help Cambridge Credit Counseling Corp is a 501(c)(3) nonprofit organization. Required disclosures and state licenses, the privacy notice and the terms are linked in the footer of every page.