Credit Cards: A Double-Edged Sword?

Credit cards can help launch you into a better position in life if used wisely but if abused, they can quickly put you in the venomous claws of debt. They can be a great cushion, but need to be treated with respect or they will cause havoc in your life. They are meant to be used, but they are also meant to be paid off.

A Common Mistake People Make

One of the most common mistakes people make about using credit is the viewpoint that having available credit is the same as having money. This viewpoint that it is the same as money - to be freely spent with payments just enough to keep the interest current leads to the constant and inevitable creation of more debt.

Paying only the minimum on your credit card(s) can take someone years to pay off the balance. The credit card companies like this, for this is how they make their money. When you make your payments on time, they will then reward you with more credit so you can use more, and the debt ogre gets bigger and bigger. Using credit can have many advantages, but it is a double edged sword.

The Bad Side of the Sword

Unexpected things can happen in life and plans can change in an instant. What happens to your ability to keep up with credit card payments if you lose your job or become ill and cannot work for awhile? The credit card companies are not sympathetic; they are a business and their purpose is to make a profit. Their response to your falling behind will normally be to raise your interest rate, and tack on penalties or late fees for not keeping your agreements. Now that you are in even more debt, you fall further behind and the phone calls start coming.

The average American household has approximately $ 9,000 worth of credit card debt and credit card companies are tightening up on who they give credit to. With the economy still sluggish and unemployment rising, more and more people are falling behind on their ability to pay off debts.  The more aggressive companies will sometimes even take you to court and obtain a judgment if you haven't paid them; this can then lead to wage garnishment or taking money directly out of your bank account to satisfy the debt.

Financial Help is Available in Salt Lake City

If you are experiencing heavy debt and want to be more in control of your financial situation you should consult with a Salt Lake City bankruptcy attorney to see what your options are. Once you know which one is right for your specific situation, you can then take to right actions to get back in control. At the Stone Law Firm, we are here to help you do this. We offer free consultations and can help you get the relief you need.  Constant worry over debt can cause upset in many areas of life and even bring on illness so don't wait until matters get worse.

For sound and effective legal advice, contact a Salt Lake City bankruptcy lawyer in our office and we will go over the details of your situation in confidence.