Many are turning to credit cards to pay their bills during COVID-19
From more people shopping online to those who are struggling to pay their bills, many are turning to credit cards.
With unemployment rates jumping to 14.7 percent in April, some people are using their credit cards to fill the gap.
"We do know that more people are struggling because there's a lot of requests for deferrals," says Executive Director of Consumer Credit Counseling Services of the Black Hills, Bonnie Spain. "There are six to seven million people that have asked for a mortgage deferral. We also know that credit is tightening and that means the credit card companies are getting a little bit nervous."
Depending on the situation, credit card companies are willing to work with those who are struggling.
"If they were always paying on time, then credit card providers are going to work with that," says Spain. "However, if they were behind 60 or 90 days then credit card companies may not work with that."
One way to avoid these situations is for people to cut back on their spending.
"If you're going to use credit, try not to charge more than you can pay off every month or within the next twelve months because we don't know what's going to happen with our economy," says Spain.
Spain also wants people to know that credit card companies can lower your limit, just like they can raise it.
This can ultimately effect your credit score.