Credit Cards Can Be a Double-Edged Sword

Having credit cards can be a blessing when we need to make instant purchases and the cash is not to hand. Unexpected expenses can come crashing down on us like a surprise visit to the doctor may be needed, the starter motor needs replacement on our car or the cat has a bad case of hairball-itis and needs to see the vet. Credit cards can be the heroes of the day, our knight in shining armor.

What about that new suit on sale at the lowest price of the year or the most perfect dress that will be gone tomorrow if you don't buy it today? The credit card again can come in most handy and instant gratification can make life easier. As long as one understands the rules of the credit card game and can stay on top of it, it is not a problem. If you are good at keeping your agreements, credit card companies will give you the opportunity to have even more credit. One side of the sword can be smooth and slick, but the other can be sharp and unforgiving.

Consequences of Breaking the Rules

When one uses credit cards, he signs an agreement that he will make monthly payments and make them on time; otherwise he will be subject to penalty. Unexpected things happen in life that can make it impossible to keep up with the original agreement. When payments are late, or minimum payments are not made, penalties enter the picture and interest rates get raised. You soon find yourself getting into deeper debt and owe even more money. Credit card companies do not have sympathy with what may be happening in your life, they are a business after all, and are there to make a profit. Their typical response is to raise your rates even higher.

The Pain of Interest

If you made an $800 credit card purchase and paid just a bit over $14 a month minimum payment, and paid on it for ten years, you would pay close to $970.00 in interest at an 18% interest rate per year. This means your original $800 purchase really cost you over $1,700. The average household in the U.S. has about $ 9,000 of credit card debt; you are not alone.

There are Solutions to Any Problem

With our economy still in a deep recession and many people out of work or experiencing cutbacks, problems with credit card debts are skyrocketing. If you are in the Irvine or surrounding area and find yourself feeling overwhelmed with credit card debt, you should consult with an Irvine bankruptcy attorney to see what solutions are available to you. At The Law Offices of Bruce C. Bridgman we specialize in bankruptcy and debt relief. We can help you determine which is the best solution for your specific financial situation so you can gain relief and be free from the stress. We are caring, professional and can provide the guidance you need to ensure your best interests are protected.

Contact an Irvine bankruptcy lawyer in our office for a free consultation today.