Life Without Credit Cards

Many people abuse their credit cards, racking up debt until they find that they are in serious financial straits. The pay-now-deal-with-it-later mentality can cause this to happen since using a credit card distances the buyer from the real costs, which include added interest tacked on to every purchase carried into the next billing statement. Several studies have shown that people tend to spend more money when using credit cards than when forking over hard-earned cash. Many people have learned to handle this out-of-control spending by ditching their credit cards after reaching a point where their debt has become overwhelming. Can it be done? Yes, it can although it does have drawbacks, especially when you need to book a flight, rent a car, or pay for some dire emergency when you don't have any savings.

The Journal of Consumer Research reported on a 2012 study which showed that those who pay by credit card tend to look at the benefits of their purchase while those who pay by cash more often look at the expense of a purchase. This may be the reason why people who eliminate credit cards pay more attention to their spending and learn to spend less, especially on non-essential items. The National Foundation for Credit Counseling has stated that individuals who switch to a cash-basis of spending spend 20 percent less than they did with credit cards. These individuals tend to be more in control of their finances because of their mindfulness about where their money is going.

While giving up your credit cards can restore your financial solvency, it does have its drawbacks. Making timely payments on a credit card gives you a positive credit history. Unless you keep it under control, however, your credit history can be seriously hurt by abusing that same card.

Bankruptcy and Debt Relief Firm in Gwinnett County, Georgia

Those with insurmountable debt often find themselves in trouble due to a job loss, costly illness, injury, or divorce, through business or investment losses, or through mismanagement of their finances, such as credit card overspending. In such cases, finding workable debt relief solutions can bring an end to the stress and struggle of insolvency.

Fred P. Kross P.C. is a debt relief and bankruptcy firm located in Gwinnett County which provides experienced legal assistance to those in need of such solutions. Attorney Fred P. Kross is dedicated to the goal of helping you regain control of your finances. He can help you save your home, keep your car, stop wage garnishment, and put an end to credit harassment. The first step is to sit down with him to review your situation and explore your options. You can get started by contacting his firm for a free consultation. Get the knowledgeable legal advice you need to eliminate your debt and create a brighter future.