We can help you understand your options.

When you miss a credit card payment, you are no longer current on your credit card and you are considered delinquent. You may be charged a late fee on top of your minimum amount due. You might also not be able to make purchases. For example, when in delinquency, Discover may have purchase authorizations stopped so additional purchases can’t go through.

After two missed payments, Discover may notify the credit bureaus of the late payment. You can always reach out to Discover to discuss ways to manage your credit card debt. We may also be able to offer assistance that can help you get back on track.

After four missed payments, your Discover Card may be suspended, which means you can no longer make purchases with the card and reversal requires a pattern of actions from the cardholder and a systematic review by Discover. After six missed payments, your Discover Card may be permanently closed. Following your seventh missed payment, your Discover Card may be charged off, but you’re still responsible for the money you owe and your balance becomes due in full.

Being current means paying your minimum payment amount on your credit card bill on time each month. On-time payments to your debts is one of the most important factors when it comes to determining your credit score and maintaining long-term financial wellbeing. Making on-time payments shows creditors that you’re a responsible borrower, which can help when you want to open a new credit card, take out a loan, or get a mortgage.

As your credit card company, we have a vested interest in helping you remain or get current on your credit card. If you’re facing financial hardship, we may be able to provide assistance in getting you current and better managing your account balance.

The simple difference is that debt settlement companies are an entity you contact to discuss debt negotiation and settlement options, while debt consolidation loans are financial products you can apply for and roll multiple debts into in order to reduce interest and pay off your debt.

A debt settlement company is typically a for-profit business that makes money off of people looking for debt help. Sometimes called debt consolidators or debt relief companies, they charge a fee for their services and may promise to lower or eliminate your debt all together. Most debt settlement companies actually recommend stopping payments to your creditors—not making payments causes further delinquency, which can lead to impacts to your credit score. An alternative is to reach out to your creditor to see what options may be available to you. Or, consider contacting a nonprofit credit counselor, which potentially has established relationships with lenders and can help create a debt management plan and provide financial education and guidance.

Traditional debt consolidation is an option offered by a financial institution like your credit card, bank, or credit union. This includes financial products such as balance transfers, personal loans, and home equity loans. These are a possible option, but they require application and approval from the lender based on creditworthiness, so they’re not an option for everyone.

You can always reach out to your creditor to manage debt and find out what options are available to you. At Discover, we can work with you to help you get current on your credit card. You might be eligible for payment plans that may help lower your monthly payments or reduce your interest rate.

*A nonprofit credit counselor can also provide financial guidance and debt management plans. In addition to providing financial guidance and education, they may also be able to negotiate with your creditors to lower your monthly payments. They do this through an option called a debt management plan, which if accepted by your creditors, can help you pay down your credit card debt and other debts. Counselors can be a key partner in your journey toward long-term healthy financial management behaviors, such as spending what you can afford to pay back and maintaining a budget.

Debt settlement companies may claim to provide financial help for those struggling with debt, but they usually charge for their services and may not follow through on their promises. If you work with a debt settlement company, there is no guarantee that your creditors will negotiate with them. If you are currently working with a debt settlement company and decide to drop your relationship with them and reach back out to Discover, we may be able to work with you on payment options directly.

If months of delinquency go by, you may receive a legal notification from your credit card company telling you that they are taking legal action. It’s best to be open and honest about your situation and contact your creditors and lenders as soon as you begin experiencing difficulty keeping up with your bills. An agent may be able to find payment programs that work for you and allow you to stick to the terms of your borrower agreement and obligations.