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Credit Card Debt: Hindering or Helping My Credit Score?

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Following an overwhelming dose of 2020 and all the year had to dish out, you may have found perspective regarding many things in your life. Suddenly, all the crushing worries that kept you up at night—from how to juggle work and a personal life to paying the mortgage and student loan debt—may suddenly have been put on the back burner in the face of a worldwide viral pandemic.

Millions have faced unemployed and recent data shows that one in four adults have experienced financial hardship due to COVID-19. As 2021 looms though, you may find yourself with more time on your hands than ever due to restrictions, social distancing complexities, and outright quarantine. Avoiding coronavirus is probably on your mind, along with handling financial issues that could be growing. For many, it became impossible to pay credit card debt that was already out of control prior to the pandemic; however, for others, those valuable pieces of plastic may have begun to represent a fallback position.

While it is understandable that you may have needed to use credit cards as an alternative form of income during these times which are difficult for so many, you may also take some time to consider how to turn your finances around. Even with some major dings to your credit, you may be extremely surprised at how quickly you can begin turning it around. Taking out a loan and paying it back through a lender who will be reporting to credit agencies is an excellent way to begin credit repair—but what about using and paying on credit cards?

Temptation to spend more than you can pay back is certainly a point to consider; however, when you make charges and then pay them off each month, you can begin to repair your credit score. Taking out new credit cards could cause your score to go down though, and what you do take on should remain minimal in most cases. Balances equaling more than 30 percent of your credit limit could be detrimental to the health of your credit score.

If you have been served with a collections lawsuit recently though, priority must be given to dealing with legal issues, and it is in your best interest to consult with a skilled attorney as soon as possible to avoid the potential for a default judgment—giving creditors the ability to chase you over unpaid debts for 20 years.

With the help of a skilled collection lawsuit attorney, you can create a reply as well as considering a defense. You may also want to speak with your attorney regarding the option of negotiating with creditors. Contact Fitzgerald & Campbell, APLC now. Let us review your case and discuss what would work best for you.

Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (844) 431-3851, or email us at

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