Credit Card Debt (2) Blogs - Page 2

Maxing out your credit card hurts your credit score. To your creditors, the fact that you use $2,000 of your available $2,000 credit means that you have stretched your finances to the limit and may soon become unworthy of credit.

If your goal is to pay off credit card debt in a reasonable amount of time, you are going to have to pay more than the minimum payment. Here’s why.

Whether multiple credit cards will help you or land you in debt depends solely on how you manage them. If you have out-of-control credit card debt, having more than one credit card is a bad idea because available credit may be a temptation you cannot resist. On the other hand, if you are never tempted to use your credit card inappropriately, having multiple credit cards can offer some advantages.

You have just paid off your credit card and taken a big chunk out of your debt in the process. Congratulations! Now, you face a question: Does it make sense to close a paid-off credit card account?

The Coronavirus Pandemic is causing financial hardship for many Americans, even forcing some to put important bills like rent on their credit cards. This could cause a massive increase in credit card debt when the pandemic is over.

Credit cards are practical and make life easy. You can pay for groceries, holidays, and shopping with your credit card while also paying off the credit balance at the end of each month. But what happens if you can’t afford to pay the balance in full? What happens if you only pay the minimum payment and the credit card balance starts ballooning? Are you in too much credit card debt?

Debt has become ingrained in American culture. Today, few of us can imagine a car without payments, a house without a mortgage, or a college student without a loan. In addition to these debts, Americans are also carrying a significant amount of credit card debt.