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Credit cards - Excessive usage can lead you to bankruptcy

Posted By: Sandra 114 Baughman114 | Posted On: 2008-04-23 | Article ID: 55065

Credit cards - Excessive usage can lead you to bankruptcy

Credit cards have a lot of advantages but when overused it can cause serious financial hardships which could lead to bankruptcy. It is best if you keep your credit cards to one or two. This will help avoid misuse.

It is becoming more evident that the main reason behind bankruptcy is credit card debt. Consumers are using credit cards in replacement of cash or checks more and more every day. Americans are spending and making purchases with money they do not even have coming in. I speak with many people each day who tell me that they are using their credit cards to pay their monthly bills! They are forced to rob Peter to pay Paul. This is not a position anyone wants to be in and this type of spending will most likely land these consumers in bankruptcy court.

There is no doubt that every working person now has a collection of credit cards in his pocket. They have become the “convenience” in purchasing. You can use them anywhere you go and it makes for a speedy transaction. Television ads are broadcasting all over how consumers who choose to use cash or check slow down the flow of purchasing by portraying them as losers or “not with the times”. Very clever ad put out by VISA. Who are the ones benefitting from using plastic? They clearly are.

Credit card companies send out their offers daily and consumers go on shopping as if they have all the money in the world. Their spending way above what they earn. The reason is because minimum payments set by these credit companies are based on average of around 2% which most consumers can afford—they think! We know that the average household carries $10K in credit card debt, but did you know that it will take 382 months and it will cost $14,600.00 in interest to be free of that debt if you only make the minimum payments? Ouch!

It is no secret that our economy is in trouble. Bankruptcy is at an all time high and most Americans are unaware that they can do something about their debt before it gets that bad. Some things to consider are first, move high interest credit cards to a lower interest card if possible. Do not only make the minimum payments, but try to double that amount. Stop using your cards unless absolutely necessary. If you do not have the cash, don’t buy it! If you are already in too deep and cannot afford to even pay some minimums, seek debt counseling! Be sure to make out a budget and stick to it otherwise, you will land yourself in bankruptcy court.

 

Article Source: http://www.articlecell.com

About The Author
Sandra 114 Baughman114

Sandra Baughman, has been an expert in the financial industry for over 10 years Debt Management. If you would like further information regarding Debt Management and/or Debt Settlement, please visit Debt Settlement here.



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