What action should a person with multiple unpaid credit cards take?

A person with multiple unpaid credit cards should notify the credit card companies to negotiate a plan because this approach can lead to more favorable terms, such as reduced monthly payments or a lower interest rate. Engaging with the creditors shows a willingness to address the debt responsibly, which can foster goodwill and potentially lead to options that make repayment more manageable. Many creditors have programs for individuals facing financial difficulties, including forbearance or hardship plans that could provide the necessary relief.

Negotiating a plan can also help avoid the negative consequences associated with ignoring calls from card companies or continuing to miss payments, such as late fees, increased interest rates, and damage to one’s credit score. Transferring balances to a new card may offer short-term relief but does not address the underlying issue of unpaid balances and may incur additional costs or fees.