Credit Cards: What You Need To Know
Credit is a double-edged sword for most consumers. Your credit cards allow you to make large purchases, take vacations with the family and shop online. At the same time, using your credit cards without a clear plan of how to manage the debt can put you in a position where you are at risk for severe financial distress.
If your credit cards have put you in a position where you are already at risk, don’t wait to get the help you need. Call us today at 1-800-320-9929 to speak with a certified credit counselor. You can get free expert advice on the best way to eliminate your credit card debts with a confidential, no-obligation debt consultation. If you would prefer to get started online, you can fill out a request for a Free Debt Analysis and a counselor will call you soon.
Are Credit Cards Really the Right Financial Tool for You?
Problems with credit card debt are not isolated to one region of the country or one ethnic group. Credit card debt has led to severe financial distress for millions of Americans from every state and station in life. Experts attribute most of the trouble to consumers using credit to supplement their income and live beyond their means. Make no mistake, credit cards cannot substitute income, and trying to make that kind of system work will put you in a bad place financially.
This doesn’t mean credit cards are the enemy of a healthy financial outlook. You just have to understand the risks that come with using credit and put plans in place to keep your finances under control. With the right budget strategy and a solid plan to pay off debt strategically, you can use credit without worrying about the fact that you are putting your financial future at risk.
|You able to buy needed items now||You pay more for purchases with interest added|
|There is no need to carry cash||Additional fees can be applied to your transactions|
|It creates a record of your purchases||If you lose track of spending, you can face financial distress|
|It’s more convenient than writing checks||There is a proven increase in the risk of making purchases on impulse|
|Some credit cards offer rewards programs with great incentives||You can experience "purchase acceleration" where you buy more just to earn rewards|
Risky Habits When It Comes to Using Credit
If you want to use credit successfully, you need to foster good habits when it comes to using your credit cards. The following list shows the most common bad credit habits consumers develop:
- You use credit cards to make daily purchases because you don’t have enough cash
flow available in your budget to cover all your expenses each month.
- You use credit cards to make purchases without considering how you will pay the
- You use credit to make purchases that you know are outside of your budget, because
you really want those items at that moment.
- You make impulse buys without thinking about your budget because you have your credit
- You get in a cycle of using one credit card to pay the bill on another credit card.
- You consistently pay only the minimum amounts due on your credit card bills and
never any more than requested.
If any of the above habits are something you do, there’s a strong chance that credit card debt is causing problems for your finances. Call us at 1-800-320-9929 and talk to a certified credit counselor about your debts in a free, confidential debt consultation. You can also get started online with a request for a Free Debt Analysis and a counselor will call you.