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Using a credit card wisely to avoid overwhelming 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.

However, there are also many people who use credit cards wisely - the "good" way to use credit cards. What are those good ways? Well, for most people there is nothing wrong with having credit cards, and in fact the use of credit cards can help build a person's credit. But, many people avoid the potential of crushing debt by using their credit cards only for emergencies. Things happen and sometimes an Escondido resident may not have the cash on hand to pay for an emergency. However, in the aftermath of putting something on a credit card, it can be a wise move to also make a plan for paying it off.

Another important part of using a credit card wisely is to always pay the monthly statement on time. A late payment can not only lead to the assessment of a fee by the credit card company, but can also have a negative impact on your credit score.

The "bad" way to use credit cards can often eventually lead to a bankruptcy filing. The wrong way to use a credit card can include charging things that the person can't really afford, taking out cash advances on a credit card or purchasing special but unnecessary services offered by the credit card company. Making a budget and sticking to it can be the best way to avoid these potentially harmful uses of credit cards.

Source: FindLaw, "Avoiding Debt: Credit Card Do's and Don'ts," Accessed May 9, 2015

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