Because it is so easy and convenient to use credit cards for all kinds of purchases, many consumers in Florida and elsewhere have accumulated debts that have become overwhelming. Keeping credit card debt under control is quite a challenge, and then there is the added temptation of promised savings and discounts on retail store cards. To tantalize consumers even more, sign-up discounts are offered that often lead to unanticipated purchases.
Store credit cards have advantages and disadvantages, and consumers may be wise to consider the impact such credit cards will have on their financial stability before signing those application forms. The interest rates on credit cards linked to particular stores are typically higher than the co-branded cards offered by some groups. A consumer needs to consider whether the advantages of the sign-up discounts will not be cancelled out by the additional interest that will be paid.
While credit cards can serve to improve credit scores, this will only be the case if they are properly managed. Running up balances on additional credit cards may backfire and have an adverse impact on credit scores. However, applying for a retail store credit card at a store where you shop regularly and make significant purchases may bring about significant savings.
Retail stores often offer special discounts on particular products that are exclusive for holders of their credit cards. This is the time when consumers must be honest with themselves when they consider whether or not they want or need the item. Impulse buying can lead to overwhelming credit card debt, and the most effective way to get a fresh start may be to explore the advantages and protection offered by personal bankruptcy. Consulting with experienced Florida bankruptcy attorneys may provide consumers with viable options to remedy their financial dilemmas.
Source: dailyfinance.com, “That Signup Bonus for Getting a Store Credit Card Isn’t Enough“, Michele Lerner, Accessed on June 3, 2015