Credit Card Debt Help
Credit card debt affects people of all different lifestyles across the country who are unable to pay off unsecured consumer debt. When purchasing products and services using a credit card, you are required to make timely payments to the credit card company to pay off the purchase balance. Yet if you cannot make repayments or unable to make full payments, credit card interest and fees can add up. This problem leads to enormous credit card debts that can feel overwhelming.
There are many reasons why you may be unable to pay off your credit card debt. Yet there are also ways for you to deal with this debt, adopt wise money management strategies, and improve your credit score to become a responsible card holder. Once you feel confident on how to keep your debts and payments manageable, you can make smarter decisions when using your credit cards.
As my law partner pointed out recently, new data released by the Federal Reserve shows that credit cards debt has reached over 1 trillion in the United States. This is the highest it has been since before the recession in 2008. Creditcard.com states that the average consumer in America owes approximately $9,600 in credit card debt. A recent creditcard.com survey found that consumers are using credit cards for making smaller purchases in 2017. Out of 674 cardholders surveyed, 17% were using the credit cards to make purchases of $5 or less, which is an 11% increase from the 2016 survey. …Read More
With back to school right around the corner, many shoppers are hitting stores and using credit card to pay for their purchases. A recent report by the U.S. Federal Reserve showed total consumer borrowing rose by 18.4 billion in May which is the strongest gain since November’s $25.1 billion increase. While household income has increased in the past ten years, it has failed to keep up with the increased costs of living. To compensate, many Americans rely on the most expensive ways to borrow—credit cards. The credit card trap is an easy way to sink further and further into debt. If you…Read More
The average consumer knows that credit cards do have advantages, e.g., better response to fraud issues, ease of renting cars and hotel rooms, cash back and travel bonuses. The problem? Many consumers use them to spend more than they can afford. As simple as that notion may seem, CNN Money released an article suggesting that the problem of overspending could be avoided if consumers had a “good introduction” to credit card use. Specifically, the article suggests avoiding three rather large mistakes when selecting a card: (1) Avoid paying credit card late fees; (2) Avoid unnecessary interest; and (3) Get something…Read More
CNN Money recently reported that 6 out of 10 Americans don’t have $500 in savings, according to a new report from Bankrate. So what does one do if hit with an unexpected expense like a car repair, medical emergency or even the more costly car and home maintenance expenses? Well, 41% of adults reported having enough in their savings to pay for an expense of $500 or more. About 20% reported that they would use a credit card to cover the expense and another 11% would seek financial assistance from friends or family members. Only about 20% would cut back…Read More
What is an authorized user? An authorized user is someone who has been “authorized” to use a credit card that is in someone else’s name. For example, parents will sometimes add their children as an authorized user to help build their child’s credit or use while they are away at college. Benefits Establish or improve your credit score For an authorized user without credit, being added as an authorized user to an existing credit card account that has an impeccable pay record, may help establish or improve credit fairly quickly since the credit card holder will likely report the debt…Read More
I have many friends who are watching their kid’s graduate high school this year. Our turn will be next year and the thought of sending our daughter away from us to attend college is exciting but sad. I remember when I moved away from home and the temptations of being my own “boss” was liberating and yet frightening. We pray we give our children the tools to not only be successful in the classroom but remain true to who they are as a person. As a consumer bankruptcy attorney, I see that many of the financial problems my clients have…Read More
Credit cards are readily available to the majority of Americans and, when used properly, can be quite useful. They are convenient for emergency situations and can provide more security. If you manage to be responsible with your credit card use, you can also build your credit score. This may help save money when financing something like a home or vehicle. Unfortunately, responsible credit card use is not as easy as it sounds. Aquiring Credit Card Debt Quite often, credit card debt begins with good intentions. You tell yourself that you will pay it off every month, pay period, or even…Read More
About two weeks ago, two separate clients tried to convince me that they needed to keep a particular charge card from their respective bankruptcies. Mind you, it is illegal to intentionally leave a creditor out of your bankruptcy. And even though both of these clients were aware of that, they still felt compelled to plead their case in hopes of keeping this particular debt out of their bankruptcies. The Appeal of “Free” The debt, as you’ve probably guessed, was a Victoria’s Secret store charge card. What intrigues me is the reason that both clients wanted to keep their Victoria’s Secret…Read More
This is the time of the year when we typically review what we have done in the past year and make plans for changes in the year before of us. Many of us will resolve to lose weight, quit smoking or quit drinking. We make these decisions because we are concerned about our health and general well-being. We want to be happy and feel good. We want to make responsible decisions that will help us to be better parents, spouses, friends, employees and employers. Debt is a Health Risk Having practiced consumer bankruptcy law for almost thirty years, I can…Read More
So you just withdrew $100 from your bank account, and by the end of the day you have $12 left, but you have nothing to show for it. Where did you spend your $88? What did you spend it on? If you’re like most people you probably have no idea. Most people do not have a clue how much they actually spend on their monthly expenses. If you don’t know how much you’re spending, how do you know how much you should be budgeting? Track Disposable Income When we meet with clients during their free bankruptcy consultation most have underestimated…Read More