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Credit card debt on store cards may harm your financial health

Tennessee consumers may agree that the time approaching the holidays is the time when their resistance to credit card spending is at its lowest. As if that is not enough pressure, store assistants use all their skills to pressure consumers into taking on store-issued credit cards. However, for many consumers, additional cards could mean extra stress related to credit card debt. A recent study showed that almost a third of shoppers were bullied by cashiers in an effort to convince them of the advantages of branded credit cards, and many of those consumers succumbed to the pressure and took on such cards.

The tactics commonly used are tempting discounts offered to those who sign up there and then, knowing that if given the time to think it over, most shoppers would decline. The advantages that sales persons emphasize typically include special offers, advance knowledge of upcoming sales and bigger discounts for higher purchases. Something you may not anticipate is the fact that, while you are pushed to spend more in order to get greater discounts, you will be expected to pay the full amount every month or be charged even more interest.

The interest rate and how it could affect your credit score is never mentioned. The interest on store-issued credit cards is typically much higher than that of regular credit cards, and every application for a credit card leads to an inquiry that will adversely affect your credit score. A lower credit score will mean paying more for credit purchases in the future, and it may affect your ability to buy a home or a car.

If you have succumbed to the pressures of the holiday season and spent more than you anticipated, the New Year may bring financial difficulties with overwhelming credit card debt. Rather than clearing out your savings to resolve the issues, you may want to be proactive and consult with an experienced bankruptcy attorney in Tennessee. While it may seem like a drastic step, it may avoid months of stress and anxiety, as a personal bankruptcy filing may discharge some of your unsecured debts, including credit card debt. A visit to our bankruptcy website will provide more information on the protection offered by personal bankruptcy.

Source: dallasnews.com, "Stand up to credit card pressure", Michelle Singletary, Nov. 29, 2014

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