This TikToker hasn’t paid her credit card bill in 7 months — says she needs the money to cover the ‘bare necessities.’ Is she making a mistake?


‘Just send it straight to collections’: This TikToker hasn’t paid her credit card bill in 7 months — says she needs the money to cover the ‘bare necessities.’ Is she making a mistake?

‘Just send it straight to collections’: This TikToker hasn’t paid her credit card bill in 7 months — says she needs the money to cover the ‘bare necessities.’ Is she making a mistake?

Paying off your credit card every month is one of the first rules of personal finance. But with high inflation rates, many Americans are finding it increasingly hard to follow this solid piece of advice.

Brandi, who goes by @miss.brandiii on TikTok, recently posted a video talking about why she isn’t paying off her credit card bills anymore.

Don’t miss

“If you’re anything like me, just a normal person with a normal job in this s— a– economy that can’t afford anything these days, except your bare necessities, then you’ve slacked on paying some of your bills,” the mom of two says.

Brandi adds that she hasn’t paid off her credit card bill for the past seven months, despite making decent money as a salesperson. It’s just too expensive to pay the credit card and her basic needs.

Her credit card company eventually called and told her that they’re close to sending her debts to a collections agency. The credit card representative warned her that this could seriously affect her credit score.

“Do you also realize that right now my credit score means absolute f— all, nothing to me?” Brandi says. “Do I look like I’m buying a house? Do I look like I’m buying a car? Does it look like I can afford to buy anything ever again?”

“I’m going to save us both the time here,” she says she told the credit card company employee, “just send it straight to collections because between now and next month if you keep trying to call me, nothing’s going to change.”

Credit card balances are common

Brandi isn’t the only one giving the finger to the credit card companies. Bankrate discovered that 49% of Americans carry a balance on their card from one month to the next as of November 2023. This is up 10% since 2021.

But most people aren’t carrying these balances due to overconsumption or a shopping addiction. Bankrate’s study says that 43% of cardholders’ balances are due to an unexpected or emergency expense.

Inflation has shot up 3.4% since last year, according to the most recent Bureau of Labor Statistics data. Shelter, electricity and food have all seen price increases, making it harder for people to make ends meet.

This is especially true if they’re facing an unexpected expense. Only 63% of Americans have enough money saved to pay for a $400 emergency, according to the most recent Federal Reserve numbers.

“Inflation is making an existing trend worse,” Bankrate senior industry analyst Ted Rossman told CBS MoneyWatch. “We’ve been seeing this for a while, with more people carrying more debt for longer periods of time. It’s moving in the wrong direction.”

Read more: Don’t miss out: Jeff Bezos reveals the secret to prime real estate profits — say goodbye to landlord headaches

Does your credit score really matter?

Unfortunately, ignoring your credit card bill only makes matters worse. You may find, like Brandi, that before long you’ll receive a call from a collection agency. But even if it doesn’t escalate to that point, each month you leave a balance on your card is likely to impact your credit score.

And if you trash your credit score, that will only make it harder for you to buy a home or a car, or even get a new credit card in the future.

But it’s tough to care about a credit score when you’re struggling to get by. Brandi says she’s putting off her credit card payments because she needs to focus on buying essentials for herself and her kids: food, rent, car payments, medicine and clothes.

This is fair. Even personal finance celebrity Dave Ramsey — whose whole schtick is being anti-debt — has advised a radio show caller to put food on the table for his kids before paying off their credit card bills.

Though you may not be able to pay off all your credit card bills right now, you do have options. You can try to negotiate with your credit card company to lower your interest rate.

All you have to do is call up your credit card’s customer service department. It’s not guaranteed that they’ll do this, but it’s also not an uncommon request.

The credit card company is more likely to lower your rate if you have a history of paying on time or have a good credit score. But if you don’t have a squeaky clean credit background or the customer service representative is playing hardball, you can ask for a temporary interest rate cut to show that you’re committed to paying down your debt.

What to read next

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.





Source link

Visited 3 times, 1 visit(s) today

Related Article

'Why I spent my university fees on the Big Tribal Game'

‘Why I spent my university fees on the Big Tribal Game’

BBC Scrolling through Zara’s transactions shows she has spent thousands of dollars on TikTok. Zara, not her real name, is in her 20s, lives in the US and has Somali roots. She became obsessed with the platform’s live battle feature – which sees two influencers verbally spar and sometimes mock each other as they solicit

Israel strikes Lebanese city of Baalbek after ordering evacuation

Israel strikes Lebanese city of Baalbek after ordering evacuation

AFP A huge column of black smoke rose into the air following one of the strikes in the Baalbek area Israeli strikes have killed 19 people, including eight women, around Lebanon’s eastern city of Baalbek, the country’s health ministry has said. It came hours after tens of thousands of residents fled in response to evacuation

Bull

Strike on Iran Shows Israeli Air Force’s Embrace of Ballistic Missiles

Israel’s weapon of choice in its attack on Iran was the air-launched ballistic missile. These allowed Israel to strike Iran rapidly and with minimum risk to its own aircraft. Air-launched missiles have many advantages over ground-fired ones. Thanks for signing up! Access your favorite topics in a personalized feed while you’re on the go. download

Standard product shot of the new iMac

Everything Apple announced during its unofficial Mac Week

Following the illustrious line of calendar-spanning corporate events like Lobsterfest and Shark Week, Apple tried something new this year with a celebration unofficially known as Mac Week. (Fortunately for Apple, it just so happens to coincide with its earnings call on Thursday!) The company’s three-day product rollout for desktop hardware centered around the M4 chip,

iPhone battery health iOS 18 new feature

Your iPhone Quietly Got a New Feature to Extend Its Battery Life

Do you leave your iPhone charging for long periods throughout the day? Adjust this setting. iPhone battery health iOS 18 new feature When Apple rolled out iOS 18 earlier this fall, your current iPhone gained quite a few standout features — a vastly more customizable Home Screen and Control Center, a redesigned Flashlight app, new

Argentina's Milei fires foreign minister for opposing US embargo on Cuba

Argentina’s Milei fires foreign minister for opposing US embargo on Cuba

Reuters Diana Mondino has had to bid farewell to the foreign ministry Argentina’s president, Javier Milei, has sacked his foreign minister, Diana Mondino, after the country voted in favour of lifting the US economic embargo on Cuba at the United Nations. Argentina was one of 187 countries that supported the non-binding UN resolution on Wednesday.

Spain battles deadliest flooding disaster in decades as death toll rises

Spain battles deadliest flooding disaster in decades as death toll rises

Rescue operations under way after deadly flash flooding in Spain Spain is enduring its worst flooding disaster in decades, with at least 95 people dead and dozens more missing, after huge rains swept the eastern province of Valencia and beyond. Torrential rain on Tuesday triggered flash floods which swept away bridges and buildings and forced

Extreme Rainfall Creates Piles Of Cars In Spain

Extreme Rainfall Creates Piles Of Cars In Spain

Now Playing Extreme Rainfall Creates Piles Of Cars In Spain 00:46 Next Up Drone Captures Rainbow Halo Illusion Over Maine 01:06 Mount Rushmore Blanketed In Snow 00:25 Time Change This Weekend: An Extra Hour Of Sleep 00:22 Fireball Lights Up Dark Skies Over Rural Spain 00:22 Amazing Rescue Amid Deadly Flooding In Spain 00:30 Dramatic

Biden's "Garbage" Gaffe Defended By White House As Harris Distances From POTUS

Biden’s “Garbage” Gaffe Defended By White House As Harris Distances From POTUS

Kamala Harris is distancing herself today from Joe Biden’s “garbage” gaffe amid a very close election race, but the White House is insisting it’s all about the apostrophe. “Just to clarify, he was not calling Trump supporters garbage,” White House Press Secretary Karine Jean-Pierre said at the top of Wednesday briefing as the blast radius

“Amazing Joe” Burrus

California magician died on Halloween after being buried alive. What went wrong?

On Oct. 31, 1990, Fresno magician Joseph “The Amazing Joe” Burrus attempted a daring feat. Following in the footsteps of famed escape artist Harry Houdini, Burrus planned to be buried alive in a plastic-glass coffin under feet of cement, only to emerge unscathed. “I consider myself a master of illusion and escape artist. I believe

Applied Materials, Inc. (AMAT) Faces Challenges Amid Semiconductor Short Positions

Applied Materials, Inc. (AMAT) Faces Challenges Amid Semiconductor Short Positions

We recently published a list of Jefferies’ Top Crowded Semiconductor Short Positions: Top 10 Stocks. In this article, we are going to take a look at where Applied Materials, Inc. (NASDAQ:AMAT) stands against other Jefferies’ top crowded semiconductor short positions’ stocks. With the third quarter earnings season with us, the semiconductor industry continues to be

Positive News for Economic Growth as UK Government Resumes Funding for Growth Deals

Positive News for Economic Growth as UK Government Resumes Funding for Growth Deals

In a joint statement, the Mid South West Region and the Causeway Coast and Glens Borough Council expressed their enthusiasm following the announcement by Chancellor Rachel Reeves that the pause in funding for Growth Deals has been lifted. The statement read, “We welcome the news that the UK Government will stand by its funding commitments

Delphi murder suspect's alleged jail confessions revealed in court

Delphi murder suspect’s alleged jail confessions revealed in court

Prison staffers are revealing the alleged confessions made by Delphi, Indiana, murder suspect Richard Allen while behind bars. Allen is accused of killing Libby German, 14, and Abby Williams 13, on a hiking trail in rural Delphi on Feb. 13, 2017. He’s pleaded not guilty to murder. John Galipeau, the former warden of the Westville

Kamala Harris’ campaign claims over 75,000 attended Ellipse rally

Kamala Harris’ campaign claims over 75,000 attended Ellipse rally

WASHINGTON – Vice President Kamala Harris’ presidential campaign claimed more than 75,000 people attended her Tuesday rally on the Ellipse in Washington, D.C. “Over 75,000 Americans turned out for Kamala Harris,” read the post to X along with a 12-second video that showed the massive size of the crowd. VP Harris makes final pitch to

Riyadh Air orders 60 Airbus planes (Emmanuel DUNAND)

Riyadh Air orders 60 Airbus planes

Riyadh Air orders 60 Airbus planes (Emmanuel DUNAND) Saudi Arabia’s new national airline, Riyadh Air, announced on Wednesday it has ordered 60 narrow-body aircraft from Airbus, as it prepares for takeoff next year. The carrier, created last year, has reached “an agreement to purchase 60 Airbus A321neo single-aisle aircraft in the latest step towards its

Person holding a cheese wheel in a container, with the text "You got to smell this" overlaid on the image

It’s Forbidden! Here’s Why Some Countries Have Downright Banned These 7 Foods

Have you ever tasted something so good it feels like it should be illegal? Well, in some countries, your favorite ingredients and foods could actually land you in legal hot water. On this subject, the r/cooking Reddit community recently shared the foods they’ve heard are banned — or downright illegal — in some places, and

0
Would love your thoughts, please comment.x
()
x