Credit Cards: Convenience & Controversy

Credit Cards, these two words may sound a warning to some ears and make others see red. But Credit Cards, like any other products or services are consumer friendly and designed to assist the consumer making their work and life more convenient and hassle-free. Like any other product or service, credit cards too can become a source of botheration for you it you are not handling credit cards diligently by the consumer.

Convenience Through Credit Cards:

Credit cards can be used in emergencies when we run out of cash. Apart from being a luxury for some people, credit cards come handy while traveling abroad. Credit cards not only cut the necessity of carrying cash (making our wallets lighter), they also reduce the risk of losing the cash. In case your credit card is lost, all you need to do is to report the loss and ask for replacement or termination of the previous credit card.

Causes Of Inconvenience:

A credit card may become a source of problem when we do not manage it carefully and diligently. We should not have more credit cards than we require. Also making the monthly budget keeps us from spending more than what is necessary. Lining up the priorities and spending accordingly also saves the anxiety and need of running away from the creditors. We need to identify the reasons of our accumulating debts and acknowledge them by taking steps to rectify them.

Rectification Of Credit Cards-Related Problems:

Taking the help of credit counselors can solve the issues related to bad debt arising from our credit cards. These counselors not only help us to line up our financial priorities; they also acquaint us with the laws pertaining to the repayment of the debt. The federal law, Fair Debt Collections Act, has laid down guidelines on the debt collection practices undertaken by the financial institutions and against the harassment of the consumer.

We should also be in constant touch with the creditors to know how much we owe, our limits and the deadlines. Credit Cards are meant for our convenience and by using them responsibly we can avail the benefits of their services.