People who are trying to get out of debt tend to have the same kind of love-hate relationship with credit cards that people who are trying to lose weight or improve their diet have with doughnuts. In their best moments, they write out a budget or a meal plan and follow it, but when things go from bad to worse, the credit card or doughnut is just the temporary fix they need to tide them over until the next meal or the next payday when they can try again to stay on track. Long before you ever started researching major solutions like consolidating your debt or filing for bankruptcy protection, you probably realized that paying for things with a credit card only makes your financial problems worse, even though it offers temporary relief. By using your credit card today and avoiding a late fee, you can end up paying much more in interest in the long term. If your most recent credit card statement is such a horrific sight that you have finally decided to do something about your debt problems, contact an Oakland lawsuits, collections, and creditor harassment lawyer.
Sometimes, Paying With a Credit Card is Not an Option
People who live paycheck to paycheck tend to use credit cards not for major purchases but rather to free up funds in their bank accounts to pay creditors who do not accept payment by credit card. For example, you cannot pay your rent or mortgage with a credit card. Most car loans and utility bills also do not accept credit cards. Likewise, there is an overarching theme that if you cannot discharge it in bankruptcy, you can’t pay for it with a credit card, either. That means no credit card payments for child support, court-ordered fines, or tax obligations. You also cannot use a credit card to buy a money order. Therefore, people use credit cards to buy groceries, gasoline, and similar items that are not necessarily splurges or impulse purchases.
Sometimes, You Can Pay With a Credit Card, But You Should Not
Medical bills are a particularly insidious form of debt. While most doctors’ offices and hospitals accept payment by credit card, they also tend to charge additional fees for choosing this form of payment. If you have set up an installment plan where you pay interest on a medical bill, and then you make a payment with a credit card, by the time the bill is paid off, you have paid much more than the original sticker price, between the interest payments and the credit card fees. This does not even count the interest that accrues if you do not pay off the amount you charged on your credit card by the end of the billing cycle.
Contact the Law Office of Melanie Tavare About Declaring Your Independence From Credit Cards
A debt relief lawyer can help you if your credit card balances keep creeping higher as you use your credit cards to pay for necessities. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a free case evaluation.
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