5 Things to Do if You Have a Negative Credit Card Balance

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Shivangi Gupta
Shivangi adds great value to the team with her prompt and well-researched insight. Her unprecedented love for literature is reflected well enough in her writings. She takes you on a tour to a world apart with the visual imagery in her content that urges the readers to ponder. To get the brain juices flowing, she makes sure to have a brewing cup of coffee next to her all day.

Your heart might have skipped a beat when you first came across the fact that your credit card balance is actually negative. But when you look closely, in most cases, this happened because you didn’t prove to be a responsible credit cardholder.

There are cases when you are not at fault and don’t worry, you wouldn’t have to pay up for that either. This is most common in case of refunds, canceled fees, removing fraudulent charges, or anything else.

In these cases, once you contact your issuer and ask for your money back, your balance will return to zero. You see, you aren’t making any money, or losing any. It was your money that has come back to you. Naturally, your credit score remains unaffected.

But here is the thing, once you see your credit card balance hit negative, there is a constant urge, need, and desire to change it to zero. And for that, I’ve got you covered. Below, I’ve come piled 5 ways on how you can get your credit card balance, positive, once again.

1. Using financial and budgeting apps

A big reason why you are facing the recent crisis is that you have spent way more than you can actually afford. This clearly shows a lack of budgeting. Don’t worry, this is actually way more common than you think.

There are many people, who are starting their careers, new to credit concepts, and more and definitely have trouble budgeting. The fact that it is such a common problem, ensures that there are tons of apps on the app stores that can assist you with it.

Using such apps will ensure that you make smart choices, the next time you use your credit card. All these apps aren’t just restricted to budgeting but have many other useful features as well that can help you in managing other finances as well.

2. Bank transfer application

With almost 0% introductory rate, you can consider applying for a bank transfer. Once you do this, you will be transitioning your debt from one line of credit to another card with a different issuer.

Transfer fees might be charged but, in most cases, this is a much cheaper alternative.

3. Negotiations

Most people think that their issuers do not want you to negotiate but there is no truth in that. In reality, they want you to pick up the phone, and ask them what you want, and all that they can offer to you.

Asking credit issuers if they can reduce their interest rates is a good start. They can also be willing to switch cards. What you do not know is, in reality, most debts are negotiable, only if you hesitate a little less.

So, give your best shot irrespective of who is sitting in front of you: bankers, insurance companies, internet service, landlord, or anyone else. In the worst-case scenario, they will say No.

4. Don’t limit yourself to minimum payments

Why should you pay more than what you are legally obligated to pay? Well because eventually, if you don’t, you will have to pay more. Thanks to the rising interest rates.

Don’t just pay the minimum, pay the amount you have budgeted. This will help you walk out of the debt trap, faster.

5. Prioritizing is the key

Everyone owes a debt. There is no denial to it. But what some people do better than others, they are smart enough to manage and prioritize their debts. Prioritizing debts can be as simple as listing all the debts in one place and evaluating the urgency at which they need to be paid.  

As kids, we were all taught to do difficult jobs first, right? The same logic applies to credit card debt. Pay the hardest ones first. This can be the one charging the highest interest or the one with the highest amount of debt.

Decide by yourself, do the math, create a budget, and slowly, but steadily, pay off the debt.

Over to you…

Being stuck with debt isn’t really one of the best feelings in the world, and on top of that, having a negative credit card balance makes things worse. But here is the thing: You can get out of it. It is not that difficult as it appears. 

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