Boston Bankruptcy Lawyer

The Truth about Credit Cards

Many people in the United States feel that by using their credit card they are helping themselves to gain valuable rebates or incentives. People feel that if they are using a credit card responsibly, it is not a problem. These things are both untrue. There is no such thing as responsible use of a credit card. As a result of many of the myths propagated by the credit card companies, credit card debt is a significant problem in the United States.

One of the biggest myths is that there is some sort of positive side to credit cards. This is patently untrue. Anyone with a credit card will spend more if a credit card is an option. Paying a bill on time is not enough. The bill is paid off so no interest accrues but people with credit cards are likely to spend 12 to 18% more than their cash carrying counterparts.

The rebates are another huge issue. If a credit card gives 5% in rebates or points that can be redeemed, the user would have to spend $80,000 on one credit card before he or she could have $4,000 in rebates or points. That is not a good deal. It’s a much better idea to use cash and put the difference in the bank. At a certain point of savings, higher interest rates become available.

When cash is used in place, the consumer can “feel” the money leaving. This is not true with credit cards. Flipping a credit card up on a counter requires nothing emotionally. If plastic must be used, debit cards are much safer.

Some people think that they can “beat” the credit card companies at their own game. This too is untrue. When a person plays with a multi-billion dollar industry, he or she cannot win.

In the majority of cases, personal finance is 80% behavior. The bad habits, like credit cards, that result in more spending need to be cut from a person’s life before personal finance is successful.

Contact a Boston Bankruptcy Lawyer

If you are drowning in credit card debt and other debts and are considering bankruptcy, contact the Boston bankruptcy lawyer of Joshua Spirn & Associates at 1-800-975-5346 to discuss your case and to determine your legal options.