Your credit card has been lying to you to prevent you from declaring bankruptcy. That’s right – that piece of plastic in your wallet or purse wants you to think that it’s a simple financial tool that requires little thought to use. After all, what’s so complicated about a credit card: all you have to do is pay off more than the minimum payment per month, never carry over a balance and always look for a better interest rate.
Seems as simple as pie, right?
Actually, what you don’t know about your credit card can hurt you. Credit card companies love to keep benefits, terms and services hidden under all of the red tape so you’ll never know how to wield your credit card to its full potential. Additionally, their sneaky credit card tricks will keep you struggling to pay off your debts forever, rather than getting the relief you need by declaring bankruptcy. Here’s how to spot these tricks that make you think you’re okay, when you should actually declare bankruptcy.
Beware Of Introductory Offers
You’d like to think that you will be getting that 8% interest rate for as long as you have your credit card. However, credit card lenders are notorious for hiking up interest rates after an “introductory period”, which they leave hidden in the fine print. Credit card companies enjoy luring you in so you avoid declaring bankruptcy, so be sure that you read the fine print before you keep moving around your credit card debt.
Forget The Rewards!
Unless you actually like facing blackout dates, expirations and restrictions, just use your credit card’s cash back feature (all credit cards have this reward). Many credit card companies attempt to entice applicants to sign up for rewards cards, only to be faced with sky-high interest rates. After all, someone has to pay for all of those so-called rewards – and you can bet it’s not the credit card companies.
Don’t Close Your Credit Cards
Financial experts who once applauded closing lines of credit are now backtracking on their advice. Why? The concept is simple: since much of your credit score is determined by your available credit, leaving old or unused credit accounts open can actually boost your score. Think twice before you close off that extra account, unless you’re already considering filing bankruptcy – then it doesn’t really matter at that point.
Your credit card debt can keep you paying forever – and preventing you from getting the help you need by declaring bankruptcy.