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Errors that lead to credit card debt

Appleton and Outagamie County, Wisconsin, residents are among the 1.5 billion credit card users across the United States. The Credit Card Accountability Responsibility and Disclosure Act provides some protection to credit card users, the consumer still needs to use credit responsibly. Failure to do so could lead to unmanageable credit card debts. For this reason, consumers should be aware of some common mistakes when it comes to credit card usage.

First, it is important to read the fine print on credit card offers and agreements. A consumer may be easily swayed by promotional materials only to find that he or she has to make extra payments when the promotional time expires. Also, payments should be made on time; late payments will affect one's credit score. Another lapse that consumers make is requesting credit card advances. A cash advance on a credit card will come with a very high interest rate.

When consumers fail to observe these user guidelines, they often find themselves in debt and harassed by creditors. So, how does a person legally and effectively get out of credit card debt? It definitely is not by using another credit card to pay off debts.

Filing for bankruptcy is an effective option. Depending on which Chapter of the Bankruptcy Code is used, bankruptcy can discharge all credit card debt or provide the consumer with a payment plan that will protect their house and other assets. A bankruptcy law attorney can advise the consumer whether Chapter 7 or Chapter 13 bankruptcy is their best option.

Source: Today, "10 costly credit card mistakes," Aug. 20, 2013