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Credit Card Debt

  1. RGraf profile image84
    RGrafposted 7 years ago

    What questions would you like to see answered about credit card debt?

    1. profile image0
      mtsi1098posted 7 years ago in reply to this

      what will the impact be after new credit card rules take effect next year?

      1. Jeffrey Neal profile image87
        Jeffrey Nealposted 7 years ago in reply to this

        Check my profile.  I have two hubs about the new rules.  They aren't all good.

    2. profile image0
      cosetteposted 7 years ago in reply to this

      how many credit cards is too many?

      is one credit card enough?

      what are some of the hidden pitfalls with department store credit cards?

      can my underage child use my credit card in a store?

      1. Rochelle Frank profile image89
        Rochelle Frankposted 7 years ago in reply to this

        I would think it hard to keep track of a bunch of them. We used one for years, but now i use one and my husband uses another-- just easier to track spending that way. Both ae paid up. Pay online and early to avoid charges.

      2. anujagarwal profile image71
        anujagarwalposted 7 years ago in reply to this

        One credit card is enough, but I prefer 2 credit cards. I use only 1 on a regular basis and with no default basically to have a good credit score. Second card can be used in hard times, in case you are short of money, you can pay-off bill of one card from another card. I mean by using balance transfer option, sometimes it really helps.

  2. tdarby profile image61
    tdarbyposted 7 years ago

    Why do people keep using credit cards?  That is my big question.

    1. lrohner profile image84
      lrohnerposted 7 years ago in reply to this

      Ditto, ditto, ditto. Although my 24 year daughter has asked me question about credit cards (that keep getting sent to her, btw) that I just can't answer. She used to date a finance guy who told her it was bad for her credit to close out credit cards at whim. He told her to just let them sit and lock them away and be careful how many she closes in how short a time. Is that true? And if so, why?

      So basically, outside of paying on time/late, how can having a credit card impact one's credit rating?

      1. Lily Rose profile image84
        Lily Roseposted 7 years ago in reply to this

        Yes, it's true.  If you were to apply for a loan, say, to buy a car or house, the bank wants to see that you're responsible for making regular payments.  Some financial experts advise maintaining a credit card with a small balance just for that reason.

        Banks lend you money based on your ability to pay them back responsibly and your score is impacted by your debt to credit ratio.  So having a credit card with a credit limit of, say, $5,000 and a zero balance gives you a good debt to credit ratio.  If you go and close your credit cards just because they don't have balances you affect the credit ratio and banks don't want to lend you money.  You kind of have to borrow money to be able to borrow more money - quirky, but that's the way it is.  I hope that made sense.

        1. dahoglund profile image81
          dahoglundposted 7 years ago in reply to this

          However, if you have a lot of credit cards open but no balance on them, then they look at the potential debt you might get into.I got turned down for a refinance loan based partly on credit cards, although my morgage is the only dept I have. I have two cards I actually use and I pay the balance every month.

    2. Misha profile image74
      Mishaposted 7 years ago in reply to this

      It's quite convenient. smile

    3. Lily Rose profile image84
      Lily Roseposted 7 years ago in reply to this

      Unfortunately, some of us fall on hard times when something like a cancer diagnosis kicks us in the financial ass, then it rains in our living room and the credit card has to be used to pay the $1000 roof leak repair because we're tapped out since we used all our savings to move across the country and buy a house so I could be near my family while receiving treatment.  That's MY story, anyway...

    4. Rochelle Frank profile image89
      Rochelle Frankposted 7 years ago in reply to this

      I've used mine for a long time, yes for the convenience-- especially when traveling or buying online. Also it gives a good accounting of what you spent, and where.

      In the 30 or so years I've used it, never carried a balance or paid a finance charge.  Don't even pay a yearly fee-- because I told them I'd rather cancel than do that.

      I always thought that was the way they were supposed to work.

      Now I am finding myself using my debit card more because some local merchants are charging a fee for using the credit card.

    5. mackyi profile image82
      mackyiposted 7 years ago in reply to this

      people use credit cards for several reasons:
      1)Some people just don't have the money to purchase things they need at that moment.
      2)Some people have a compulsion for spending.
      3)Some people are either out of a job or just not making enough money to cover basic household monthly expenses

      1. hubber-2009 profile image60
        hubber-2009posted 7 years ago in reply to this

        If you are using credit card for the third reason your Suicide date is nearing you.. be Careful...

    6. profile image60
      jhnsmith978posted 7 years ago in reply to this

      I will not say its a big question.Its a stupid question though..Credit cards are the most crucial thing anybody want in present scenario. It acts as a plastic money for the people..
      And Credit Card like Gold Cards are amazing..

      1. Miss Belgravia profile image79
        Miss Belgraviaposted 7 years ago in reply to this

        No, this is a stupid answer. "The most crucial thing anybody want in present scenario." Really?

  3. megs78 profile image62
    megs78posted 7 years ago

    How did the American system decide it was OK to send X amount of credit cards to unemployed people, and people who were already drowning in credit?  How did American lenders think that a person with an annual income of 25,000 dollars could afford a 500,000 dollar home?

    1. ledefensetech profile image80
      ledefensetechposted 7 years ago in reply to this

      It's called moral hazard.  The lenders figured if they got into trouble, they were "too big to fail" and the government would bail them out.  No harm, no foul.  At least not from the lenders perspective.  The rest of us got screwed, but the "too big to fail" businesses got their corporate welfare.

  4. earnestshub profile image88
    earnestshubposted 7 years ago

    Well done Lily! It takes a strong family to do what you have done. My best to those who support you.
    More power to you lovely lady, and kick the daylights out of the cancer. I beat mine. smile

  5. Envoy profile image60
    Envoyposted 7 years ago

    So sorry to hear about your hard times Lily. Same thing happened with us when the CC changed their codes & I had no choice but close my business & relocate, as I lived above my Convenience Store & Motel business. One of the hardest hubs to write was about credit cards because their rates make me so angry grr lol. I hate that we had to go that route too. Sometimes you just can't help it. Anyways sorry to be so long winded just wanted to say I hope for great things in the future for you & your family Lily smile

    RGraf I have a quick question what is your best advice on how to tackle credit card debit?

  6. coyjay profile image77
    coyjayposted 7 years ago

    My dad use to say, if you can't afford it don't buy it. Like most sons I didn't listen to my dad.


  7. Randolph Goldberg profile image60
    Randolph Goldbergposted 7 years ago

    Credit cards are not the enemy, they are are vital part of the U.S. and global economy; always have been and always will be. People just misuse credit and take it for granted. If people were to use their credit cards in conjunction with a solid budget, and only spend what they had there would be no problems, but its hard to have respect for money when you don't actually pay for things in cash. Its a mental thing.

    1. Miss Belgravia profile image79
      Miss Belgraviaposted 7 years ago in reply to this

      It's true that credit cards have become a vital part of the U.S. and global economy, but it isn't true that it has always been that way. Credit cards have only been in wide use for about 40 years. What did people do before that? They saved up for what they wanted, paid cash, and used their savings for emergencies, instead of paying someone else usurious interest of up to 30%.

      I stopped using credit cards about five years ago, with no ill effect. I buy what I want when I have the money, and don't fear every trip to the mail box. I have no problem traveling, even internationally, with just a debit card. I'm a bankruptcy attorney, and after seeing the misery caused by my clients' enslavement to credit card companies, I decided to opt out of the system. I have no regrets. My clients are forced to give up their credit cards when they file a case, and for most of them, it's a terrifying prospect. But without exception, they are better off, and happy to be out from under the burden of crushing debt.

      1. J. McCoy profile image62
        J. McCoyposted 7 years ago in reply to this

        I completely agree. My wife and I were licensed tax preparers, I teach financial literacy, and provide crisis counseling (not credit counseling). Our family doesn't use credit cards, either. We don't have problems buying online, traveling, renting a car, or buying a home without credit cards or debt. Our debit card works everywhere Visa does.

        You might consider that if people had "a solid budget, and only spend what they had," they wouldn't need a credit card at all. Unfortunately, the majority of people don't even know how to live without them. Even less know how much of a difference it can make. I admit it took a few years to transition to a debt free perspective and lifestyle. I agree with Belgravia, it's worth it.

  8. Randolph Goldberg profile image60
    Randolph Goldbergposted 7 years ago

    Well before credit cards people were still able to get credit, but it wasn't on a national scale like it is today. You could get credit from the local grocery store and what not. A credit card is basically a standing loan that you pay back every month.

  9. Wayne Orvisburg profile image77
    Wayne Orvisburgposted 7 years ago

    I had a few credit cards and things were okay until I used them to compensate, for what I thought was short term, income reduction. Bad idea. However, if you're having some troubles, read my hub on negotiating with credit cards. I have how I talked to Chase, HSBC, and Citi.

  10. megs78 profile image62
    megs78posted 7 years ago

    My husband and I have been credit card free for about 3 years now and love it.  We have no regrets whatsoever and have become much more reasonable regarding our consumer habits.  The point being, if we don't have the money for it, we don't buy it.  its so simple.  and feels so good to be able to live stress-free.  of course, we may buy the odd prepaid credit card, but thats not debt, so we are ok with that.

    To anyone who may be under the crushing load of credit card debt; as Wayne Orvisburg says, it is possible to negotiate credit debt with the companies and settle your accounts for a fraction of what you owe.  Certainly, you will lose your good credit rating (if you have one) and it will take time to rebuild your good standing, but if you need a way out, think about negotiation.

    If you need any more info, just post here, or email me from hubpages and I will fill you in on what I did to relieve my financial burden 3 years ago.

  11. Karina S. profile image60
    Karina S.posted 7 years ago

    Read my hubs about credit cards and debt consolidation, hope it helps