Credit cards tend
to get a bad reputation when it comes to your financial situation. They are
frequently associated with high interest rates, overspending, and out of
control debt. Given the fact that people use them for virtually everything now,
it is easy to see how this could happen. A recent report shows that people are
using their credit cards for even very small purchases such as a cup of coffee.
While this may sound surprising, there are benefits to using your credit
cards, even for small purchases. Of course, if you do find that your credit
card debt is out of control, Freedom Financial could help you get back on
track.
Benefits to Using Credit Cards for Purchases
Using your credit
cards to make purchases does have its benefits. According to Kevin Gallegos,
Vice President of Operations for Freedom Financial, using your credit
cards can help you to build credit. When you use them for small purchases and
pay them off each month, this could help to improve your credit score. The key
is to consistently track your purchases, stay within your spending limit, and
make it a priority to pay off the balance when the bill comes in.
Another benefit to using your credit cards is that you only spend what you need. In many cases, when you carry cash for small purchases, you can end up spending more than you intended. For example, you take $20 out of your bank ATM to spend five dollars for lunch. That $15 that is left doesn’t seem to stay around long, it gets spent, or possibly even lost. Credit cards are a convenient way to make small purchases without having to worry about carrying cash.
Additionally, credit cards are safe. They are added protection for purchases online. For example, if someone steals your credit card number, you can dispute the charges and cancel the card. The credit card company will not hold you responsible for charges that are not yours. Whereas, if your cash is stolen, the odds of recovering it are not good. So, when used correctly, credit cards can work in your favor.
The Downside of Using Credit Cards
Unfortunately, the temptation to overspend or not pay off the balance each month is strong for some people. The situation many people with credit cards find themselves in is maxed out cards that they are unable to pay. You may get credit cards with good intentions such as establishing credit or earning airlines miles but find that at the end of the month, something else takes priority over paying off the card. As you continue to do this, over time it can catch up with you and create more debt than you can afford. While this is not a good situation, you could be free of your debt through a program offered by Freedom Debt Relief, a company in the Freedom Financial Network.
What is Freedom Debt Relief?
Freedom Debt Relief is the largest debt negotiator in the nation. Their Certified Debt Consultants are highly trained at negotiating and resolving your debt. When you enroll in their program, you are not getting a one-size-fits-all solution. They will listen to you and your situation and customize a plan that fits you best. Even when you start with the best intentions, life happens. You may not be able to pay off your credit cards as you intended. They have already resolved more than $6 million in debt and could help you regain control of your finances too.