Instead of the card, consumers are urged to build up their emergency cash fund instead.
Dallas, TX (PRWEB) February 21, 2014
National Debt Relief, one of the leading debt settlement companies in the country, published an article that discouraged consumers from relying on emergency credit cards. The article published last February 19, 2014 was titled “Emergency Credit Cards? 6 Reasons Why It Is A Bad Idea.”
The article began by stressing how important it is to have an emergency back up plan - especially for personal finances. Consumers are strongly advised to prepare for the unexpected events that may happen in the future.
With the many options that consumers have, National Debt Relief advised them to not rely on credit cards to help them finance their emergency need. Instead of the card, consumers are urged to build up their emergency cash fund instead. The article provided these 6 reasons.
1. Using credit cards will put the consumer in debt. It is typically like solving a crisis with another problem. When the consumers pays with their card, they are using the money of the creditor.
2. It is easy to overspend. The article explained that credit cards have seemingly unlimited funds compared to using cash. This could lead the the consumer to spend more than they have to.
3. There will be no urgency to look for better alternatives. Since the “unlimited” funds from the credit card is there, the consumer is not compelled to look for other ways to finance their emergency need.
4. The credit card can end up being closed because of inactivity. The article explained that emergencies may happen one after the other while it can also be rare. While the latter is preferred, consumers relying on credit cards alone can find themselves stuck with a closed account once the emergency arrives. Credit cards are usually closed automatically by the creditor after long periods of inactivity.
5. Succeeding emergencies can bury the consumer in debt. If the emergency does happen one after the other, relying solely on emergency credit cards can lead to an accumulated debt amount.
6. It can ruin the budget of the consumers. Lastly, the consumer is warned that their budget will be ruined by these credit cards. They will have to squeeze in the credit card payments for the succeeding months if this is the payment method that they will use.
National Debt Relief believes that consumers will find more financial security if they have both cash and credit cards to rely on during emergencies. However, the debt relief company advised that consumers should prioritize using the cash over the credit card.
To read the rest of the article, click on this link: http://www.nationaldebtrelief.com/emergency-credit-cards-6-reasons-bad-idea/.
National Debt Relief have helped thousands of consumers all over the country in achieving debt freedom. They only employ debt experts that are certified by the International Association of Professional Debt Arbitrators or IAPDA. Give them a call through 888-703-4948 to know more about debt settlement as a debt solution.