Most people don’t get that first—or even second—credit card with the intention of descending into a miserable load of debt. As we work toward attaining credit, that first card often has a low limit and allows us to build slowly. This also makes it easier to rent a car, make travel plans, and perhaps purchase some items that we wouldn’t have been able to previously. Many consumers today use credit cards for every expenditure possible—from flights to groceries—with the hopes of paying the balance off each month. In making so many purchases consumers build up points and rewards, which is a common practice that can work out well if you have the income to pay off the charges. If you are putting most of your purchases on one credit card or perhaps a business card too, this can also be a good way to keep track of what you are spending, and where. These are the upsides.
The list of downsides when it comes to credit card spending can be long—and the consequences very negative. It’s all too easy to pull out that shiny new piece of plastic and buy, buy, buy without thinking about the bill until it comes—perhaps offering quite a shock at the end of the month if you were spending money you didn’t really have. Credit card companies will also often allow cash advances. This is great if you are disciplined about paying them back, but if not, you may be under the gun to pay back a significant debt soon after you get a new card. Or cards. And when they become plural, the potential for losing track is there. Enter in a couple of emergencies that necessitate further spending on credit and before you know it, those bills are arriving in the mail each month and you are filled with a sense of dread just walking to the mailbox.
You may have started off and even spent some time living the good life at the top with a credit score of 850. That can get you places, but as everyone wants to loan you money suddenly—you can quickly end up with a dangerous pile of debt. If you find yourself sinking into the habit of using the credit card too much, trying only using cash for a while. It’s a good method for sticking to your budget, as well as demonstrating exactly how easy it is to use a credit card without thinking.
Are you concerned about credit card debt, possible creditor lawsuits, or exploring bankruptcy to set your finances straight once and for all? If you are finding it difficult to pay your bills and need an experienced debtor rights attorney, contact us at Fitzgerald & Campbell, APLC. We can review your current situation and discuss your options with you, whether that means bankruptcy, negotiating settlements, or a lawsuit. Our attorneys have decades of experience representing clients in all types of consumer rights matters, including bankruptcy, and we are here to help you!