3 Buys to Avoid With a Credit Card
Credit cards can be very tricky. Sure, you can buy that dream vacation with one swipe, but you will regret it later when you are struggling with payments riddled with interest. Here are three purchases that you should never pay for with your credit card, and the reasoning behind it.
1. Hospital Bills
Medical bills are very expensive and one way to make them even more exorbitant is to charge them on your credit card. Instead, you should opt for a payment plan from the hospital to save on the high interest rates charged by banks, which can range anywhere from 10 to 30 percent. Nowadays, most providers are offering very little or no-interest payment plans.
2. Your Dream Wedding
Many people hope to have the wedding of their dreams, whether it be a destination wedding, or the extravagant ceremony that you have envisioned since middle school. In the real world, though, these dream weddings are not financially feasible for most couples, so putting it all on a credit card seems like the perfect solution. However, by choosing to stay within your means, you will set yourselves up for a far better financial future, and also enjoy your special day with a bit less stress.
3. Student Expenses
Student loan interest rates, for the most part, are much lower than the average credit card interest rate. To avoid paying much more in the long run, it is strongly advised that you do not use a credit card to make payments on student expenses.
The best way to avoid credit card debt is by making smaller purchases and paying the entire balance off monthly, rather than making the minimum payment and accruing interest over time.
It is not all bad, however. Using a credit card is not completely frowned upon, and for small online shopping excursions, it is actually preferred. When shopping online, it is safer to use a credit card rather than a debit card. Your credit card has much more protection in the event of your information being stolen. Just remember to keep the charges that are truly out of your ballpark off the credit card.
If you do find yourself in a situation where you have credit card debt issues and are in need of bankruptcy help, Kelley Fulton Kaplan & Eller is a bankruptcy lawyer in West Palm Beach, servicing Stuart, Port Saint Lucie, Palm Beach County, Palm Beach Gardens, Boynton Beach, Jupiter, and Wellington.