Credit card debt is a problem for many consumers and has necessitated that many find help when it comes to paying off these credit cards and implementing responsible credit card use, due to the fact that many consumers across the nation are suffering from excessive credit card debt in their personal life. Understandably, credit card debts may be easily met by some, in terms of the minimum payments that these consumers will meet, but when it comes to the overall cost of credit card debt, this can create a great deal of needless waste in the lives of consumers who are continuing to rely on credit but are doing little to pay off what they owe.
Also, there have been some studies that, according to an article on MSNBC.com, “…show that people who pay with cash save approximately 20 percent over those who pay with credit and don’t feel deprived.” Obviously, consumers who plan their purchases, pay with cash, and avoid charges related to credit card interest rates are going to save more overall and also find that they will be in a position where stress may be reduced since they will have less debt in their life which is hanging over their head.
However, there are some financial advisers who point out that consumers who may refuse to use their credit cards to make purchases could do some harm in their financial life as well, as credit purchases and repayment practices by consumers can lead to a higher credit score and, as a result, this can make buying a car or home more affordable, while low scores may prevent consumers from being able to access these types of financing opportunities altogether. While there are other options outside of credit cards that can be used to increase a consumer’s credit score, it all simply relates to the spending and repayment habits through credit cards, personal loans, or other financial obligations that a consumer may have as to what their credit score may be.
When it comes to those who are in a substantial amount of credit card debt, paying off what they owe and implementing responsible financial practices will be vital, and this may require a great reduction in credit card use for a set period of time. Understandably, getting out of debt is not easily accomplished and can be almost impossible if a consumer is continually using their credit cards as a way to make purchases, but are only making minimum payments on these credit card charges and, as a result, are simply living outside of their financial means.
However, some financial advisers suggest that consumers may benefit from credit card use, in terms of their credit score, but also will put themselves in a situation where they can avoid excessive debt if they will plan their purchases, save up money for big-ticket items, and use their credit card to make these purchases but pay off the entirety of the balance on a month-to-month basis. Consumers who may feel that simply avoiding credit card use altogether is best may find that when they are living a cash-only lifestyle, this can be used along with credit card purchases, as the cash they saved for these expenses can be applied to a credit card bill each month if they purchase these items with their card and erase this credit card debt obligation immediately, and this can also lead to benefits with their credit score.
Understandably, those who may have problems when it comes to credit card debt and controlling their spending may have to consult outside assistance, like a credit counselor, but for those who feel that completely avoiding credit cards is the best way to get their financial life on track, they may find that after they have erased their debts, implementing saving practices and responsible credit habits can be a part of their financial life which, again, can help them improve their credit score and use their credit card in a way where excessive debt will not arise thanks to these spending, saving, and repayment methods.