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Certain credit card habits that can harm people in the end

Debt is inevitable for every family in some way. Whether it is student loan, a mortgage or credit card debt, the high majority of Americans have some sort of debt. Despite the many benefits of credit cards, the financial challenges most recently experienced by Americans have led to an increased number of bankruptcies. However, delinquent payments can cause creditors to start calling or legal action in order to collect payment.

Experts have stated different strategies in order to help individuals make smart decisions when they are taking out and using credit cards. Those tips are include,

• ignore the flashy marketing materials and focus on the fine print details of the contract to enter into a credit card

• do not open a card just to get the sign-on bonus

• do not open and close cards to avoid fees

• do not bounce balances from one credit card to another

• do not open a store card to get a discount

These tips should help individuals look at the big picture of the benefits and downfalls of a credit card, which can help them make smarter decisions.

Credit card debt and other debt can have a significant impact on a person's credit rating. A credit rating can be lowered if debts are not paid on time. The lower the credit rating, the lower the Credit Score. With a lower credit score, it will be harder for an individual to get a good rate on future loans for housing, auto loans or other necessary loans. Further, if an individual has too much credit card debt, it can force them into bankruptcy. Bankruptcy may be a necessary option, and can either eliminate your debt or create a reasonable payment plan for paying back your debt, depending on the type of bankruptcy you qualify for.

Debt, even though inevitable, can be dangerous if you take credit cards out on a whim with other motivations. If credit card debt gets out of control or becomes unmanageable, it can cause many problems, not only immediately but later in life as well.

Source: Fox Business, "Four Credit Card Strategies That Can Burn You," Jeanine Skowronski, Nov. 1, 2012

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