Credit card delinquencies are rising. Here's what to do if you're at risk

Nonprofit credit counselors assist individuals struggling with credit card debt by providing a range of services aimed at improving their financial situation5. These services include:

1. Debt management plans: Credit counselors help consumers consolidate their debt into one manageable monthly payment, often with lower interest rates and waived fees.
2. Budgeting assistance: Counselors work with clients to create a realistic budget based on their income, expenses, and financial goals.
3. Financial education: Nonprofit credit counseling agencies often offer workshops, online resources, and one-on-one counseling sessions to help clients improve their financial literacy.
4. Negotiating with creditors: Credit counselors can negotiate with creditors on behalf of their clients to potentially lower interest rates, waive fees, and arrange more manageable payment plans.
5. Credit report review: Counselors can help clients understand their credit reports, identify errors, and provide guidance on improving their credit scores.
6. Housing counseling: Nonprofit credit counselors can also provide assistance to those struggling with mortgage payments or facing foreclosure.
7. Student loan counseling: Some nonprofit credit counseling agencies offer student loan counseling to help clients navigate the complexities of student loan repayment options.

These services are designed to help individuals manage their debt, improve their financial knowledge, and achieve long-term financial stability.

Experts recommend several actions for individuals at risk of credit card delinquency:

1. Seek Help from a Nonprofit Credit Counselor: Reaching out to a nonprofit credit counselor can provide guidance towards a long-term solution. Nonprofits can help create debt management plans that have lower interest rates, no late fees, and a single payment each month.

2. Negotiate with Creditors: Borrowers are encouraged to reach out directly to credit card companies to negotiate interest rates, fees, and long-term payment plans. It's in the companies' best interests if you pay before the debt goes into collections.

3. Be Aware of Hardship Programs: Most credit card companies and other lenders have hardship programs available. These options gained visibility during the COVID-19 pandemic, and consumers facing difficulty may skip or defer payments without penalties.

4. Know Your Credit Score: It's important to know your credit score and keep up with payments to avoid paying additional interest on revolving balances and debt.

5. Avoid Over-Extending Yourself: Consumers should be cautious not to over-extend themselves with “buy now, pay later” loans, which are increasingly available “at every checkout.”

Remember, the most important thing is to take action as soon as possible. The sooner you address the issue, the more options you'll have to resolve it and minimize the impact on your credit score.