Consumer credit cards can get nefarious very quickly. They seem like such a clean and useful tool. They allow people to afford things they would not be able to obtain otherwise. The United States is drowning in debt, and the acceptance of debt has become a social norm. Credit card companies are ecstatic that the social stigmas of credit cards are mild. Credit card companies do not want their borrowers finding out about a very obvious and intuitive practice- bankruptcy.
Consumer lenders have created an environment where borrowing is okay, and they have fed into that environment. A bankruptcy attorney somerville nj has seen clients buried in consumer debt. The practices companies use can be problematic and shady. There are three quick-witted traps credit companies use to only make the pile seem smaller and manageable. In reality, it is only growing heavier.
The Minimum Payment
The minimum payment is the least effective way to pay off debt. If someone spent a year paying the minimum amount, at least four of those payments would be invalidated by carrying interest rates, annual fees, and other costs of maintenance add-ons. It costs money to even have the option of using a credit card. Paying the minimum is downright ineffective. If someone is doing it for a long time, it could indicate a need for bankruptcy.
Credit Cards Are For Extra
Purchasing something with a credit card should be special and not uncommon. It should not be sued for necessities. Unfortunately, credit companies are offering gas purchase bonuses and collaborations with grocery stores to promote using a credit card for a necessary purchase. This could be unhealthy and unproductive, and it could lead to a potential bankruptcy as well.
Credit Companies Will Call
With a single late payment, collectors may begin calling. That will only intensify the situation. Borrowers who are rarely late and generally responsible with lending should not receive calls. It makes the situation worse in every way.
Making the minimum payment every month and receiving phone calls could suggest that a bankruptcy is a viable option. Use consumer cards responsibly, and do not fall for their system of keeping people in debt.