Debt Settlement Experts California

What can happen as an outcome of irrational credit card use

It is a sad reality today that many Americans have become totally dependent on credit cards in their day to day lives and more importantly are not really aware of how the irresponsible use of credit card can land a person in debt. These days most people use credit cards, instead of using cash to shop, even for the smallest of things, which often makes them spend more than they actually realize or can afford to.

Though credit cards are convenient one must be careful in its use or indiscriminate use of credit cards can lead to debt. Over spending with credit cards can have a serious negative impact on your financial future.

To add to their troubles often many families who are already facing bankruptcy use credit cards to pay their day to day living expenses a result of which they often end up paying back fines with high levels of interest, this also adds to the total debt situation of a family. It is perhaps as a result of such spending patterns that the American economy today is reeling under credit card debt, which has also been often cited as one of the major reasons for the increase in personal bankruptcy in Americans.

While the dangers of indiscriminate use of credit card and possibilities of being in debt are clear. What is not understood by many, is why consumers, continue to accumulate such debt. Let’s find out why indiscriminate use of credit card could be dangerous for you-

  • Overspending becomes a habit with a credit card and you are not even aware whether you can pay back what you are spending. For such people, a debit card is a better option. When you are buying in credit, it is easy to overspend because you are not using money and most often you don’t feel the effects till it’s too late.
  • Your indiscriminate use of credit card can land you in debt and affect your credit score. A part of your FICO credit score is based on your many accounts and the ratio of balances related to overall credit limits. People with multiple credit cards and balances close to the limit, could be badly reflected in your credit score, which in turn will lead to higher interest rates, for a mortgage or a loan that you might have taken.
  • Indiscriminate use of credit cards can overload you with debt. The tendency to buy now and pay later has often led to people buying things way beyond their capacities and as a result landing into serious debt related trouble. You should be warned if you see in yourself a trend for constantly buying things through credit cards and not paying your bills the next month or even worse opening a new line of credit to cover up previous card problems.
  • Irresponsible use of credit card can make an impact on your long term financial goals. The money that you have to pay every month for your credit card bills could otherwise be used on more necessary things like education, medical care or even to save up for future use. Instead of paying the credit card company high interest rates, your money could be used to plan a holiday, buy a home or even plan out your retirement.
  • You can ward off the negative impact that a bad use of credit card has on your credit score by hiring a smart and well experienced lawyer who will guide you in the right way about how to get out of debt through credit card misuse.

Indiscriminate use of credit card and falling into debt as a result has had terrible effects on the mental and financial health of many Americans. Save yourself the trauma and call debt settlement attorney, Shah Peerally in this regard. Call today at 1-510-742-5887 OR write to to lead a debt free life.