According to the recent data provided by the Federal Reserve, late credit card payments that are 30 days late rose to 4.79% in the third quarter of 2008. It's up from 4.35 in the same period last year. Credit companies confront financial hardships such as high charge-offs and delinquencies and so do their clients whose wealth shrinks due to job losses and falling real estate. Increasingly, banks and loan providers start using special measures to assist holders in making their monthly payments. Read on to learn what measures are offered by the companies and how do they help consumers seeking for special payment plans.

Back in the old days, banks and companies get huge profits from credit penalties, like late payments and default interest rates. Now that economic conditions deteriorate, they change the strategy in order to get what they can from delinquent customers.

This tactic seems to be irrational at first glance. Why do banks give a helping hand to cash-strapped borrowers when they confront financial difficulties themselves? In fact, it's a win-win situation for both parties. Banks and companies offer special payment plans to their clients and they will get their money back in the long run. Borrowers, in their turn, can avoid paying heavy late fees or high interest rates and thus avoid further financial troubles.

Some major banks and companies started to take these measures. Discover Financial Services, one of the leading lending providers, has designed a special section on its web site where holders can find all the necessary information concerning payment assistance online. Plus, holders can always turn their questions to Discover professionals who are ready to assist people seeking for advice and support.

American Express also pays close attention to delinquent borrowers. The company tries to track such holders on early stages in order to offer them flexible payment plans that imply affordable interest rates and fees. Bank of America waves credit fees and reduces interest rates on certain accounts through monthly payment programs. This way, the company assists customers who struggle to meet their obligations amid various financial hardships.

If you face some financial challenges, don't wait until it's too late to do something about it. You'd better contact your issuer as soon as possible. Let us be honest - no bank wants to lose a valuable client and spend additional funds to find a new one.

In case your financial situation is not that lamentable, you'd better follow certain rules to stay in bank's good graces. First off, always pay your bills on time. Now that banks have tight times, on-time credit payments will be highly appreciated. Secondly, try to avoid carrying heavy balances. It is really easy to accumulate huge balances but it is tremendously tough to manage them. Plus, balance transfer deals are not that beneficial as they used to be. You can hardly avoid paying a 3% balance transfer fee and some companies cut the interest-free introductory period. So, try to avoid situations that can lead you to huge balances and sky-high penalty charges.

Share Opinion: