Credit Card “Deals” That Can Cost You Money
Sometimes paying more actually means paying less.
Confused? Let's say you're out doing some holiday shopping when the sales clerk tells you that you could save 15% just by opening a credit card account with that particular store. You figure that you're buying the goods anyway, why not get a healthy discount? So you sign up.
So far so good. But what happens next? That credit card probably has a high APR, maybe 30% or more -- that's twice the original discount. It gets worse. Store credit cards have some of the lowest minimum payments. We're talking $5 or so. At that rate, your bill payments are solely covering the interest, not the principal. In a year, you'll have paid more than the purchase price, not less - and unless you pay off your principal, you'll be paying for that shopping excursion for years to come. And not just in interest, but with your credit score. Credit bureaus don't like a credit card-happy consumer - and you'll get dinged when you apply for the card and when you open the new account.
You thought you were getting a bargain, but you're being penalized. Want a real bargain? Tune out discounts and use common sense - like eliminating debt through bankruptcy.
Switch to cash or debit instead of credit whenever possible, and the money you'll save by forgoing interest will make every purchase (OK, every purchase within reason) look like a bargain. Even better, eliminate your existing debts. You'll save not only today, but in the future, as you free yourself from years of interest payments.
Find yourself avoiding your debts because they seem too big to tackle? Believe me, they're only going to get bigger tomorrow. Bankruptcy is a way to manageably pay off your obligations - and by the way, it's the only debt relief strategy that's actually your Constitutional right. You don't have to be an expert or a millionaire to find financial freedom. When you sign up for a free personal debt analysis with one of our Chicago bankruptcy lawyers, we'll identify a bankruptcy plan that fits your family's needs. Christmas shopping just got a whole lot easier.