Financial Independence: Credit Cards -- A Help or A Hindrance?

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Precept Financial Solutions discusses how credit cards can be a double-edged sword in building financial independence. Precept Financial includes a quick self quiz for you to test your credit card debt management savvy.

Precept Financial Solutions discusses how credit cards can be a double-edged sword in building financial independence. Precept Financial includes a quick self quiz for you to test your credit card debt management savvy.

Independence is an important part of American life and culture. Americans celebrate living in the Land of the Free. Thus the first amendment right of freedom of expression is one of the most heavily protected rights in the United States Constitution. Being able to express oneself as an individual is at the heart of what it means to experience American civil liberty.

When most people think of independence, they think of having freedom to do what they want, which in today’s society often centers on having financial freedom. It is believed that as long as one is financially independent, one is able to function as a contributing member of society. Note that where the income comes from is not at issue unless it is the government or public financial aid. Responsible spending so as not to tax the government is the point.

To take the common understanding of “Financial Independence” one step further, it means there is no need for officially documented third party intervention such as a bankruptcy attorney or consumer credit counselor.

Today there are many financial resources to assist one in building financial independence, and living and expressing themselves fully. There are different kinds of bank accounts: checking, savings, and CD’s. There are retirement plans and IRA’s, investment opportunities in stocks bonds, 401K’s, mutual funds and the list goes on.

Credit cards can be a fantastic resource to assist one in living life fully. Visa brings that point home in their latest advertising campaign: Life Takes Visa! Credit cards enable people to buy things they couldn’t afford otherwise, and allow them to pay off the debt over time.

Credit cards also cover expenses that arise by surprise and can act as somewhat of a buffer in a crisis as needed. The problem is that credit cards can also hinder one's financial independence. If one does not know how to best manage their debt, which is quite common now-a-days with complex interest-rate calculations and rapidly changing consumer credit laws, credit card debt can become a nightmare. Also, if one relies on credit cards to be their main emergency fall back, they may get a rude surprise.

Even if one plans on paying their credit cards in full each month, there are particulars with some credit cards that are different than others, which if known about and exploited, would maximize one's credit card debt management ability and one's ability to be financially independent.

For a quick check on one's credit card debt management smarts, Precept Financial Solutions has prepared a quick quiz for readers to test their debt management knowledge. To take the quick quiz and test one's own credit card debt management savvy, click on the file on the right hand side of the screen below the contact information.

To help consumers and small businesses understand how to best approach credit card debt management, Precept Financial has developed an area on their website with information about various debt solution options at http://www.preceptfinancial.com/debt_solutions.html.

Precept Financial is a leading debt assistance provider dedicated to helping consumers and businesses with financial hardship in resolving unsecured debt. Precept Financial works with creditors and collections agencies, on the client’s behalf, to help find mutually agreeable solutions. By providing effective alternatives to financial hardship, Precept Financial provides an invaluable service to both debtors and creditors alike. Notable memberships include: The Association of Settlement Companies, Greater Dallas Chamber of Commerce, American Bankers Association, and the International Association of Debt Arbitrators. Contact 1-800-866-4447 or visit http://www.preceptfinancial.com.

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Jeannie Lewis
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