Many New York residents know that credit card debt can become overwhelming. Using a credit card wisely, authorities say, is a way to purchase what is needed even when cash is low. The importance of knowing and restricting purchases to an amount that is repayable makes the difference between good buying habits and crushing debt.
Understanding the way interest works helps credit card users eliminate paying more than they should. For instance, financing a purchase when cash is low may be necessary. The important thing when it comes to interest is deciding if the amount can be repaid in months as opposed to years. Taking longer may result in costly finance fees. Becoming trapped by credit card debt is not that difficult. Allowing the balance to grow and trying to pay off the debt with minimal payments may make things worse. As interest compounds, the payments increase causing funds that may be needed for household expenses to be diverted.
Showing creditors that one is able to pay off credit card debt quickly increases the credit score. Maintaining a credit balance below 35 percent of the limit is best. A late payment will result in a 30-day delinquency being reported to the credit bureau. Allowing this to happen more than once may mean a significant drop in credit scores.
However, there are times when other debt, such as medical debt, interferes, and paying credit card bills on time might be difficult or impossible. It may be beneficial to consult with an attorney concerning the advantages of filing for bankruptcy. The attorney can offer guidance as to whether discharging debt in this way might be a viable option.
Source: Credit Card.com, “8 things you must know about credit card debt Read more: http://www.creditcards.com/credit-card-news/help/8-things-to-know-about-credit-card-debt-6000.php#ixzz3I9196eiN Follow us: @CreditCardsCom on Twitter | CreditCards.com on Facebook Compare credit “, Erica Sandberg, November 04, 2014