Clark & Washington

Getting Credit Card Debt Under Control

Credit cards can be a convenience when used in moderation. Unfortunately, many people are tempted to use credit cards to purchase things they can’t really afford. Then they get caught up in a never-ending cycle of just making the minimum payment each month. They don’t pay off the balance, and the interest keeps accruing. Over a period of time, this becomes a financial nightmare. Out of control credit card debt is one of the primary reasons people file for Chapter 7 bankruptcy. Better money management can help avoid the pitfalls of excessive credit card debt.

Credit Card Management

Some people have too many credit cards in their wallet. Credit cards are easy to obtain. Offers come in the mail all the time, and the application process is not difficult. If the maximum credit limit is reached on one card, it is too easy to grab another one. Always be aware of the interest rate that will be charged on any card where the balance is not paid in full each month. High interest rates quickly add to the debt problem.

Establish a budget and live within your means. If an item wasn’t in the budget, then save until you can afford to purchase it. Avoid impulse purchases. They are often regretted when the credit card bill comes. Only charge what you will be able to pay off each month.

Credit Card Tips

  1. Set aside cash in an emergency fund. This money can bail you out when an unexpected bill comes along, such as an unplanned medical expense or car repair. After a job loss, an
    emergency fund may help pay regular living expenses including rent and utilities. Then these expenses will not need to be charged on a credit card. Some financial experts advise setting aside three to six months’ worth of living expenses.
  2. Don’t use a credit card for a cash advance. The interest charged on cash advances begins immediately and is usually considerably higher than for regular purchases. In addition, credit card companies charge fees for cash advances.

How To Manage Your Credit Card Debt

Credit Counseling and Debt Management

If you need to dig your way out of bad credit, manage your debts or learn to budget, credit counseling can help you. More information about credit counseling is available through our firm.​ We are here to assist you with your financial challenges.

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