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Times to avoid using cards and incurring more credit card debt

The ongoing problems in the economy may be continuing to strain the financial resources of some Washington families. The temptation to reach for credit cards may sometimes seem like the best choice when making financial decisions. However, in order to avoid incurring more credit card debt, there are certain times when credit cards may best be avoided.

One of the worst times to use a credit card is when one is feeling emotionally overwrought. Spending money is not the optimal way to achieve an emotional boost. Also, one should not shop with plastic when hungry or tired, as these times are not conducive to wise spending decisions. Other times to leave credit cards out of the mix is when the card is nearing its limit or when the buyer is considering a major purchase in the near future, as lenders will look at spending habits of the recent past. Both of those situations can lower a consumer's rating and raise interest charges.

There are other times to avoid credit, such as when traveling overseas or visiting a gambling establishment. Some countries will charge higher fees for the use of credit, and casinos may lead one to overspend if the holder uses the expensive cash advance option. There are additional circumstances when credit card use may lead to higher costs, such as selecting an automatic bill pay for recurring expenses, and when the resulting interest charges make the cost higher than cash.

Understandably, there may be situations when consumers may feel they have no option other than to resort to credit for necessary expenses. A sudden job loss or long-term illness may lead to some families finding that they are overwhelmed with credit card debt and unable to cope. Washington families who find themselves struggling with massive debt may consider seeking information concerning the filing of a bankruptcy. This step may open the door to a more stable financial future once the burden of debt has been relieved.

Source: Fox Business, "10 Times NOT to Use Credit Cards", Dawn Papandrea, June 25, 2014

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