Tag Archives: CreditCardDebt
Almost all credit cards issued by banks or credit unions are unsecured. This means that if a person files for bankruptcy, these types of consumer debt are eligible for discharge. (Except in some cases where a person runs up a credit card right before filing bankruptcy—don’t do that.) However, some people who have store credit cards (think Best Buy, Sears, Lowe’s) may not realize that these cards might be secured cards. Not all are, but some cards (read the fine print) may have a security interest in any property purchased with the card. For example, if you buy a washing machine from Sears with a secured credit card, that washing machine is collateral on the debt. In the event you don’t pay the card, Sears can actually repossess the washing machine, or anything else you bought on the card! This does not mean people should not use store credit cards….
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If money is already a little tight, it might be a struggle to avoid debt during the holiday season. We associate this time with family, friends, traditions and unfortunately, with credit cards. For many Americans, the added costs of the season can be a fast track to consumer debt. Here’s a look at how to survive the holidays without drowning in interest payments. How to Avoid Debt During the Holidays Budget everything: If you don’t have a plan you will spend far more than you can afford. Know your budget for travel, gifts, food and other big items. Have an overall ballpark figure for the costs of the holiday season. Some people even create a special checking account just for the holidays. They put the budgeted amount of money into the account, then that becomes their complete source of funds for the season. Use technology to book flights: A little…
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When used correctly, credit cards can be an excellent financial tool, but there are absolutely things not to buy with a credit card. Consumer debt has become a trap for a huge number of Americans. It’s easy to make a large purchase on credit, and then end up paying far more over time because of high interest rates. This can easily accumulate into an unmanageable ordeal, where you struggle each month to make your minimum payments. Let’s take a look at some purchases you should never make with your card. Things NOT to Buy with a Credit Card Hospital Bills: Medical debt is the single largest cause of personal bankruptcy in the United States. Healthcare costs can be massive. This is why you should never put them on your card. With the high interest rates on your credit card, such large payments will quickly accumulate into a mountain of debt…
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