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We practice CONSUMER BANKRUPTCY
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We practice CONSUMER BANKRUPTCY law exclusively. 

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One of the top Bankruptcy Filers

in the Orlando Area

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  4.  » Rules to keep credit card debt under control

Many households in Florida and around the country have a least one credit card utilized for a variety of reasons. While credit card debt in the nation is growing at an alarming rate, it is vital to be informed on how to most effectively use this common financial tool. A consumer financial website has offered advice on how to wisely make the most of the credit cards someone has.

The website reminds consumers that cards with reasonable rates are possible even for those with poor credit. Though a secured credit card may be required, it is best to shop for the best interest rates and fees available. It is also important to compare the APR for purchases and for cash advances. Many companies charge a considerably higher APR for cash advances. This is also the case for a penalty APR if a late payment is made or the credit limited is exceeded.

Experts recommend that credit card holders try to negotiate better rates or higher balances with the issues. Also, those with high-interest cards should look for an opportunity to do a balance transfer to a lower or 0% APR card, if possible. This can save consumers thousands of dollars in interest charges. Also, consider travel rewards or cash back cards if the rewards are of importance. It would not be wise to charge purchases only to get the rewards.

It is also imperative to review the statement every month to protect against fraudulent purchases. While not always possible, make every effort to pay more than the minimum payment each month. To protect credit scores, it is suggested to maintain credit utilization of someone’s total credit limit to 30% or less. Finally, avoid taking advantage of every credit card offer received. Applying for multiple credit cards can cause a significant drop in credit score.

When credit card debt is out of control, it may seem overwhelming. A Florida bankruptcy attorney can be a valuable guide in determining what steps to take next. A knowledgeable lawyer can evaluate the situation and recommend a plan to help someone get back on track financially.

Source: fool.com, “10 Credit Card Rules You Should Know by Heart –“, Matthew Frankel, May 28, 2017