Credit cards can be very useful tools. These days, managing and balancing credit card debt can be a tall task. However, despite the stereotypes surrounding credit cards, getting into overwhelming credit card debt with them is not inevitable. Here’s how Florida residents can use credit cards to their advantage and avoid overwhelming debt.
Owing is easy but repaying is difficult
Descending into overwhelming debt is very easy without careful attention. A user’s credit limit is usually low starting out and increases over time, which can make purchasing easy. However, as balances rise, interest compounds and payments increase making it difficult to reduce the amount owed. Refrain from frivolous spending.
Credit scores are affected by debt
Many credit card holders are unaware that high balances will affect their credit scores. To maintain a high score, the card holder’s account balance should be under 30% of his or her available credit limit. Make more than the minimum monthly payment and always pay on time.
Ask for help
If credit card holders have high balances and are unable to make payments, it may be helpful to contact the credit card company. Many companies will work with card holders and help them with a repayment plan. There are also other resources such as credit counselors to help with paying off credit card debt.
If all else fails, there is always the option of filing for Chapter 7 bankruptcy. Before filing for bankruptcy or making important financial decisions, Florida residents with high levels of credit card debt should seek the assistance of a knowledgeable legal professional who can answer questions and help them determine the best solution relative to their specific situation.