With the holiday season well underway at this point, there are probably quite a few Escondido residents who are beginning to rack up credit card debt. For some people, the credit card balances will be paid off in full when January comes around, and they will go about their usual financial practices. But, for others, the debt is simply added on top of existing credit card debt, and the balances roll over every month. This can not only result in higher minimum monthly payments, it can also result in a hit to your credit score.
Many of our Escondido readers probably get several credit card statements each month, some with upwards of seven or eight different credit cards. And, anyone with even a halfway decent credit score will likely receive five or six different offers for even more credit cards in the mail every month. Credit cards can be useful financial tools, but they can also lead to some serious financial challenges if they are relied upon too much.
Millions of Americans have gone through the bankruptcy process, eliminating debt and getting a fresh start. Our readers who are familiar with previous posts here probably know by now that there are a variety of benefits that Escondido residents could take advantage of in a bankruptcy filing: wiping out debt, putting an end to creditor harassment and doing away with the monthly angst of not being able to make even minimum payments on debts.
Some San Diegans struggle with credit card debt in different ways. For some people, the problem is all about the sheer amount of debt. For others, the problem is remembering to make payments every month, on time. The difference between these two problems is that even if people have a large overall amount of debt, sometimes, as long as they make at least the minimum monthly payment, and they pay it on time, their credit score will not take too much of a beating. That is not always the case with delinquent payments.
Most of our Escondido readers know that one of the most important things to do in the wake of a bankruptcy filing is to begin working on rebuilding credit - and possibly even improving it. Previous posts here have made it clear that the common belief that a person will have to deal with poor credit for a period of time after a bankruptcy filing is not a myth. However, that doesn't mean that the road to recovery is impossible.
As previous posts here have mentioned before, credit cards can be useful financial tools in the right circumstances. Many people use credit cards for the various rewards programs that many of the credit card companies promote with their cards. Others use their credit cards to build up a solid credit history in anticipation of making a larger financial transaction sometime down the road, such as applying for a car loan or a mortgage. Unfortunately, financial hardships often force people to use their credit cards in ways that could lead to the buildup of unmanageable credit card debt.
Millions of Americans have at least one credit card. Many residents of San Diego use credit cards on nearly a daily basis, and many have more than one credit card. Unfortunately, the result tends to be that there are a lot of people out there who have quite a bit of credit card debt building up.
For most Americans, the balance between the amount of income they earn and the amount of debt they owe is a delicate one. Many people are able to manage this balance in a healthy way, never taking on more debt than they can reasonably be expected to pay back in short order. Others, however, are not so fortunate. Oftentimes, due to unforeseen events and reasons, leave them with poor credit and no way to increase their income.
The holiday season brings family and friends together for parties and gift giving, but, unfortunately for millions of Americans, the aftermath of the season also brings big credit card bills. Generosity can come back and cause problems in the New Year.
With the holiday season in full swing, millions of Americans are probably making a lot of purchases on their credit cards. For some people, credit cards offer a hassle-free method of paying for all types of things, from gifts to necessities, leaving the actual payment for later. But, taking on credit card debt can be a slippery slope, and in many cases what someone once thought was a few innocent purchases can lead to financial hardship down the road.