Living Without Credit Cards

Using credit cards to purchase everything from gasoline to clothes, groceries, restaurant meals, airfare, hotels, and entertainment items is so prevalent in our society that few consumers who have them can imagine a life without their plastic. Mismanagement of unsecured debt in the form of credit card debt, however, can lead to financial insolvency. Many studies have shown that those who use credit cards tend to spend more than those who do not. As a result, these overspenders can often get into financial trouble which can take years of dedicated effort to get out of. As a result, more and more people in recent recessionary times have opted out of the credit card trap.

In a 2010 poll taken by creditcards.com, 1004 people aged 18 and other were surveyed about credit cards. 29 percent of the respondents stated that they had chosen to live without credit cards and did not possess one. This was a 10 percent increase from those who responded the same way in the previous year. In a related study conducted in 2008 by a professor of marketing at New York University, evidence backed up earlier studies that showed credit card users tend to spend more money than those who pay cash. In another study, conducted in 2012 and published in the Journal of Consumer Research, it was found that people who charge items to their credit card focus on the benefits of their purchase while people who pay cash for items focus on the cost of the item. While credit card shoppers may have more options in buying airline tickets and hotel reservations, cash shoppers often have a better handle on their overall financial health.

Bankruptcy Attorney in Irvine, California

As everyone knows, mismanagement of credit cards can lead to insolvency. A sudden job loss, reduction in pay or hours, a serious illness or injury, or a costly divorce can all lead to financial disaster, followed by phone calls and letters from creditors, collection agencies, and those holding the loan on your car or home. When these kinds of circumstances occur, you may be reeling from an inability to meet your financial obligations with the situation worsening as the months go by. Such a situation calls for you to take action to find out what can be done to help you find a debt relief solution that meets your needs.

For those located in and around Irvine, California, Peter Rasla & Associates is a law firm dedicated to helping clients find a solution that is tailored to their individual needs and objectives. Find out how you can eliminate unsecured debt, stop creditor harassment, stop wage garnishment, a foreclosure, or a repossession with the right debt relief solution such as a Chapter 7 or Chapter 13 bankruptcy petition. Learn what is involved, what you need to do, whether you qualify, and what the advantages and disadvantages are in these types of debt relief solutions. You can get your life back on track with the right legal solution that works for you. Contact the firm to arrange to speak with a qualified attorney about your financial situation today.