What to Do if You Might Miss a Payment | Citadel

We know life doesn't always go according to plan. A job loss, a medical setback, an unexpected emergency — any of these can shake even the steadiest financial footing. If you're facing a situation where you might not be able to make a payment, the most important thing to know is this: you have options. And acting quickly makes all the difference.

What Actually Counts as a Missed Payment?

Being a few days late isn't usually a crisis. Most lenders don't flag a payment as officially missed until it's at least 30 days past due. That's an important window you can use to get ahead of the situation.

To put it in perspective: the Federal Reserve Bank of New York found that up to 10% of active credit card accounts went 30 or more days past due at least once in 2024, and TransUnion data suggests up to 12% of cardholders miss at least one payment over the course of a year. It happens to good people. What matters is what you do next.

What Happens to Your Credit Score if You Miss a Payment?

A payment that's fewer than 30 days late typically won't appear on your credit report — but you may still owe a late fee. Once a payment hits 30 days past due, it can be reported to the credit bureaus and may lower your credit score. The impact is greater for scores that were higher to begin with. Payments 60 or 90 days late cause more significant damage.

The good news: on-time payments going forward will gradually restore your score. A single missed payment isn't permanent — but it's worth working hard to avoid.

Step 1: Call Your Creditor — Before You Miss the Payment

This is the single most important action you can take. Call your credit card company or lender before the due date — not after. Many creditors offer:

• Hardship programs that temporarily lower your monthly payment
• Payment deferrals that push the due date without penalizing you
• Late fee waivers for customers with a solid payment history
• Reduced interest rates for a set period

They'd rather work with you than send your account to collections. Being proactive signals that you're responsible — and that goes a long way.

Step 2: Take a Close Look at Your Budget

If money is tight, sit down and map out what's coming in and what's going out. Go through your bank statements line by line:

• Cancel memberships or subscriptions you're not actively using
• Identify any recurring charges you forgot about
• Look for categories where spending can be temporarily reduced

Every dollar you free up is a dollar that can go toward the bills that matter most right now.

Step 3: Pay the Essential Bills First

Not every bill carries the same weight. Until you're back on stable ground, prioritize what keeps your household running:

• Mortgage or rent — staying housed is the top priority
• Utilities — electricity, heat, water
• Transportation — especially if you need it to get to work
• Healthcare and prescriptions
• Childcare — if it enables you to work

Credit card payments are important, but they're generally lower priority than keeping a roof over your head and food on the table.

Step 4: Consider Nonprofit Credit Counseling

If your debt challenges have been building for a while, a nonprofit credit counselor can be a real ally. They can help you look honestly at your finances, create a workable repayment plan, and sometimes negotiate lower interest rates with your creditors on your behalf.

The National Foundation for Credit Counseling (nfcc.org) can connect you with a counselor near you. Many offer free or low-cost services. This is not the same as a for-profit debt settlement company — nonprofit counselors work in your interest.

Step 5: Know Where Else to Turn

You don't have to figure this out alone. The United Way's 211 network connects people with local resources for everything from utility assistance to food programs. In most areas, you can call 211 or visit 211.org to find what's available near you.

Additional resources worth exploring:

• Your state's utility assistance programs (LIHEAP) for energy bills
• Local community action agencies for emergency financial help
• Hospital financial assistance programs if medical bills are involved
• Your employer's EAP (Employee Assistance Program), which often includes financial counseling

Frequently Asked Questions

How late can a payment be before it affects my credit score?

Generally, a payment must be 30 or more days past due before it's reported to the credit bureaus and affects your score. Being a few days late may result in a late fee from your creditor, but typically won't show up on your credit report. Once it hits 30, 60, or 90 days past due, the impact on your score increases.

Will my creditor work with me if I call before I miss a payment?

In most cases, yes. Creditors strongly prefer proactive customers to delinquent ones. Many have formal hardship programs and may offer deferrals, reduced minimums, or fee waivers. Your history with the lender matters — the longer you've been a customer with solid payments, the more flexibility they're likely to offer.

What is a payment deferral and how does it work?

A payment deferral allows you to temporarily skip or delay one or more payments without being considered late. The missed payment is typically added to the end of your loan term or rolled into future payments. Deferral terms vary by lender — confirm the details (including any fees or interest that may still accrue) before agreeing.

Is nonprofit credit counseling the same as debt settlement?

No — they're very different. Nonprofit credit counseling (through agencies affiliated with the NFCC) helps you create a workable repayment plan and may negotiate lower interest rates. Debt settlement involves negotiating to pay less than what you owe, which can severely damage your credit and may have tax implications. Approach for-profit debt settlement companies with caution.

Should I use savings to avoid missing a payment?

It depends. If you have an emergency fund, it's generally appropriate to use it for genuine emergencies — including avoiding a missed payment on a high-interest credit card. However, don't completely drain savings; try to keep at least a small buffer for truly urgent needs. Also contact your creditor to explore deferral options before tapping savings.