Experts Reveal What Consumers Should Know About Credit Card Debt

(Newswire.net — April 25, 2017) Tallahassee, FL — Today, millions of people own credit cards. There are many advantages in using these cards, but there are also drawbacks when consumers are unable to responsibly use the cards.

Experts reveal what consumers should know about credit card debt. Unfortunately, having an overwhelming debt is not at all impossible. There are facts to know about this kind of debt that will help people stay away from it.

According to Elizabeth Kiss, who holds a doctorate from Purdue University, it can be quite helpful to record all credit activities in a checkbook register. Consumers should bear in mind that they can actually have credit cards while staying out of debt forever.

Kiss also recommends that consumers should update their balance constantly.

Consumers should also be aware that short-term loans actually make sense. There are times when it is prudent to use a credit card for a purchase. However, it is also important that the repayment time frame is short.

For instance, if the purchase involves $1,500 worth of living room furniture, consumers do not have to pay for it in cash immediately.

If the items are charged to a credit card with an 18 percent interest rate, consumers should make sure that they cover the balance in four months. This would end up having finance fees of $57, and this is not a bad deal. If they stretch it in two years, they’d pay an extra $300, which is quite a markup.

Consumers should also understand that owing can be quite easy, and it is the repaying process that’s hard to do. A majority of people gradually get into trouble because during a start-out, there is typically a low credit card limit.

Lucy Duni, vice president of consumer education at TrueCredit.com by TransUnion, reveals that maintaining a high score may require the account balance to be below 35 percent of the available credit limit. Consumers should remember that when they hold on to high balances, it negatively affects their credit score.

According to experts, consumers should also ensure that they develop a repayment plan. If in case they can’t make a payment, they may ask for help. They should also settle their debt cautiously.

In addition to staying out of debt, consumers should make sure that they keep their credit cards safe from identity thieves.

There are RFID blocking sleeves available that are designed to ward off fraudsters. These sleeves are extremely popular, and are thought to be extremely useful by consumers.

Individuals who want to take advantage of these sleeves may go to amazon.com.

(www.amazon.com/RFID-Blocking-Sleeves-Protector-Protection/dp/B0150T0AI2/)