Are you dealing with credit card debt? If you are not currently dealing with it, then maybe you have in the past. Credit card debt can be a big factor that leads to someone choosing to file for bankruptcy. Despite what some creditors might tell you, your credit card debt can be discharged in case of bankruptcy.

If you have experienced what can be the debilitating stress of credit card debt in the past, then it is understandable why you might want to avoid using cards in your present or future. Financial professionals, however, cautiously remind consumers that there are generally wise times when to use a credit card.

This is the first of a pair of posts that will briefly lay out examples of when professionals see using credit as potentially beneficial.

Fraud prevention

Did you know that many credit card companies will help you out if you purchase something on the card that turns out to be from a fraudulent company? If you find that you’ve been defrauded, you can report that to your credit company and they might work with you regarding the charges. If you have any doubt about a company that you are paying, charging a product or service to your credit card could save you from having to swallow a financial loss due to fraud.

Benefit from living within budget

Do you know exactly what money is coming in and going out each month? Do you generally have no problem paying your expected bills every month? If that’s the case, then it could be a wise idea to pay those bills with a credit card. If you know that you can afford the credit charges (which you should if you know that you are living within budget), you might as well earn benefits from your credit card. Depending on your credit card, you can earn miles for travelling, which can certainly come in handy. Different credit cards have different perks, and it is important that you research the details of various cards before choosing one.

Our next post will continue this discussion. Until then, feel free to post any questions or insight that you have about credit card debt or credit card use.

Source

Fox Business: “Swipe it! When it’s Smart to Pay With a Credit Card,” Kayleigh Kulp, 29 Jul. 2011