Two months in a row, credit cards have seen a rise in deliquency of payments. From CNN Money:

Fitch’s Prime Credit Card Delinquency Index measures credit card debt more than 60 days late through January, and it surged to a record 4.04% in the most recent month, trumping the 3.75% record set in the previous month.

During the last three months, the index has climbed 23%, putting the index 30% above historical averages. Fitch started the Prime Credit Card Index in 1991

That’s pretty alarming. With so many losing their job or fearing the loss of their job, more families are simply not paying their bills. Of course there are some pretty negative side effects to this, mainly your credit rating. If your credit card payments are deliquent over 90 days, you get some serious dings on your rating. Not only that, your debt may go to a collection agency. Once it goes there, you will have a very hard time trying to get yourself out of the hole.

If you do find yourself in this situation, do yourself a favor and call your creditor. Remember, you already are in a tough spot and will have trouble paying. The worst thing they can say is “no” or freeze/reduce your credit. Address the situation before it becomes a problem. Times may be tough all over, but you might be lucky and get someone from the credit card or wherever you owe money that will give you some relief.

If you think you are going to lose your job or your income is going to fall, take the steps needed to help soften the blow. Look at transferring the debt to lower interest rates. Maybe break into your savings and pay the debt off. If you have the cash to pay it off, the worst thing that will happen is that you build that debt back up out of necessity (and not lazy spending habits).

You should honor your debts, but that doesn’t mean you can’ t work with credit card companies or whoever you owe money and come to a compromise.