Archive for June, 2011
Can I Use A Credit Card To Repay My Debt
Overwhelming debt is a frightening prospect. It is guaranteed to cause sleepless nights, bleeding ulcers and a total feeling of hopelessness. If you are one of millions of people who are struggling with the scary prospect of too much debt and not enough income, it may be some comfort to know you’re not the only one with this issue. Then again, that sentiment doesn’t really offer any practical advice to helping you out of the hole.
The sad truth is it might not be possible to get out of debt, and bankruptcy or foreclosure is in the imminent future. MSN Money reports the stigma attached to either course of action may all be in the mind of the debtor. “Most people I talk with feel an enormous amount of shame when contemplating bankruptcy or walking away from a house,” Detweiler, a debt counselor explained in a recent article. “They feel like they will be branded as bankrupt or a deadbeat, but, ultimately, these days it’s often a difficult financial decision more than a moral one. I say that because many people who file bankruptcy or give up their home have done everything they can do to avoid it, and there are simply no other options left.”
Before you ravage your retirement fund, decimate your savings account or play the shell game with credit cards to figure out how you can pay down your debt, experts advise taking a clear-headed look at your debt and make an objective decision about what kind of situation you are experiencing. If you are only making the minimum payment on credit cards but you are able to make your mortgage payment, it might be an option to take advantage of balance transfer cards to get a handle on your Credit card debt. Determine if you will be able to pay down the principal during the time period of 0% balance transfer credit cards will offer, and if you can, this could go a long way to getting yourself out of credit card debt.
It is a dangerous game, because if you are unable to get out from under, once the time period for zero transfer rates has expired, the Interest rates typically jump quite drastically and you could end up in more trouble than when you started. So the question of “Can I use a credit card to repay my debt?” might be more “Should I?” rather than “Can I?” Only you can make the ultimate decision, but in the meantime it could be a good idea to consult with a debt counselor in order to make the best decision for your particular situation.
Guest post Author Mike Brains
