7 Truths About Credit Cards And Credit Card Debt

Regardless of whether you have the income to afford to pay your expenses, credit cards can help you get the things you need. On the other hand, credit cards can potentially cause a gradual build up of huge piles of debt, inevitably resulting in unfathomable pressure and anxiety. Unfortunately, many Americans are unaware of the reality behind credit cards and debt. Up next is a list of some of the most common myths surrounding credit cards and debt, and we will discuss the truth or inaccuracy behind them.

Truth #1: Debt Is Not Always Caused by Credit Cards

It is a common misconception that having credit cards inevitably causes debt. Actually, debt comes from our methods of using them.
To avoid obtaining any debt, it is imperative to:
  • Pay off your credit card in full/on time each month.
  • If you aren’t able to fully pay it off, pay off the most possible.
This is because the more you pay will help you pay less and less interest. Additionally, credit cards are needed to form a credit history, which help us receive loans for important assets such as your house.

Truth #2: Having More Than One Credit Card Does Not Damage Your Credit Score

Some people worry that applying for an additional credit card will damage their credit score. Although it is true that applying originally causes your score to lower a bit, the new card will eventually raise your score if you prevent debt.

Nevertheless, be careful not to go overboard with applying for new cards. If you have a bad credit history, this will hurt your credit score.

Truth #3: Credit Card Debt Does Not Always Come from Shopping Addictions

Actually, the majority of people in debt gained it from purchasing human necessities. A large portion of this group include:
  • Single parents attempting to support themselves and their children
  • Workers having faced unforeseen unemployment
  • Families struggling to make payments on unanticipated medical bills make up

Truth #4: You Do Not Always Need to Avoid Store Credit Cards

This belief is somewhat true, but store credit cards also have their advantages. Store credit cards typically guarantee high interest rates yet are used irresponsibly.
Although, store credit cards are not destructive if you pay them off in full and on time. If you have a low credit, they can help you raise your score, and some give you deals on in-store items to save money.

Use your best judgement when applying for a store credit card, you do not need to completely avoid them.

Truth #5: If You Only Make Your Minimum Payments, You Will Have Credit Card Debt

In reality, the more you buy without paying off your cards in full, your balance continues to rise. The higher your balance, the more difficult it becomes to pay off upcoming bills. This typically results in higher amounts of debt.

Additionally, only making minimum payments on your cards can eventually damage your credit score. Considering all of these disadvantages, it is very important to always pay your credit card bill in full, or as much as you can.

Truth #6: Credit Card Debt Is Not Punishable by Jail Time

Being punishable by jail time for credit card debt is a luckily a thing of the past and does not occur in this day and age.
However, remember that credit card debt can still have serious penalties. For example, creditors still have the ability to sue you and steal some of your property.

Truth #7: You Do Not Have to Get Out of Debt On Your Own and All Alone

If you are dealing with stress and anxieties from debt, remember that you don’t have to solve this problem by yourself. Bankruptcy attorneys are here to assist you in coming up with your own plan to get rid of your debt. Some options include but are not limited to:
  • Regulating your card payments by paying off one card at a time
  • Requesting lower interest rate and/or a loan
  • Consolidating your debt through conversing with creditors
The benefits of consulting a lawyer include but are not limited to:
  • Obtaining qualified advice and instruction
  • Gaining more perspective and more foreseeable results
  • Escaping the trouble of working directly with creditors
  • Confirming that your creditors obey laws regarding debt collection

Are You Considering Filing For Bankruptcy?

If you feel bankruptcy is the best option for your financial situation you need to speak with an experienced bankruptcy lawyer as soon as possible. Please contact us online or call our office directly at 888.348.2616 to schedule your free consultation.

James Roswold
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James Roswold is a Kansas & Missouri personal injury, workers comp, and medical malpractice attorney.