Without a good understanding of how credit cards work, consumers may find themselves in a tough financial situation that can lead to mounting debt and a poor credit score.
Boston, MA (PRWEB)
March 28, 2017
It is easy for credit card debt to spiral out of control. Hence, it’s important that consumers understand how they can protect themselves and use credit wisely. In an effort to prevent debt problems, national nonprofit American Consumer Credit Counseling has released some helpful tips on what consumers should consider when using credit.
“Prior to signing up for a credit card, it is important that consumers are aware of the proper way to use it to avoid excessive debt,” said Steve Trumble, President and CEO of American Consumer Credit Counseling, which is based in Newton, MA. “Without a good understanding of how credit cards work, consumers may find themselves in a tough financial situation that can lead to mounting debt and a poor credit score.”
According to an online survey by NerdWallet, 55 percent of respondents don’t know when charged interest on credit card purchases begins. Of these respondents, only 8 percent are aware of how a late credit card payment can affect their credit score. Only 40 percent are aware that paying an annual fee is only worth it if the rewards surpass the cost of the fee.
American Consumer Credit Counseling shares tips with consumers on how to use credit wisely (http://www.consumercredit.com/financial-education/credit/credit-education/)
1. Do not use credit cards to finance an unaffordable lifestyle. If consumers are constantly using credit cards and are unable to pay the bill each month, then they should consider whether they are using their cards to try and finance unreasonable spending.
2. Consumers should avoid…