The National Foundation for Credit Counseling (NFCC), a non-profit firm that specializes in helping consumers manage debt, says that too many people are comfortable carrying debt and use credit cards to spend more they can afford. They recently conducted a poll via their webpage, asking people how they feel about carrying debt, and they say the result suggests a handful of people are using credit cards to "fund a lifestyle their income can't support."
NFCC spokesperson Gail Cunningham claims that although the majority of people understand the importance of paying off credit cards each month, some consumers need a wake-up call when it comes to carrying debt. But she also cautions that people should not be afraid to use credit cards. The poll found that about 20% of consumers are so wary of debt that they shun credit cards completely—a move that can leave them without sufficient credit history to buy a home or car, or take out a business loan.
The poll was conducted online in July and 1,630 people participated. When asked, "which of the following best describes your attitude toward debt?" people answered:
- Paying off credit card debt each month is the responsible way to manage finances – 61%
- I don’t use credit cards at all – 21%
- Carrying credit card debt is a responsible way to manage my finances – 18%
While more than half of respondents understand how important it is to pay off credit card debt each month, the NFCC says the rest are doing themselves a disservice. Those who believe carrying debt is a responsible way to manage finances may be in for a nasty surprise when they realize how much interest they are paying, while the one-fifth who don’t use credit cards at all could be in a predicament when they need a solid credit history to get a loan.
The NFCC urges people to use credit cards responsibly, which means charging only what they can easily pay off each month, keeping their available credit high and balances low, and making payments on time.
They point out that credit cards have an edge over cash when it comes to security features, convenience, and the ability to build a good credit score.More information is available at the NFCC’s website,debtadvice.org.
Read Also Related News
If you’re trying to plan for your financial future, you are probably trying to balance a few different priorities. Putting money aside for retirement, managing any investments you may have, and paying off debt are just a few of the...
A new report has good news and bad news about savings in America. The good news is that the percentage of people without an emergency savings fund is at a six-year low, down to 24% from 28% last year. The bad news is that nearly a quarter...
It’s an oft-quoted statistic that about half of all marriages end in divorce. But less talked about is the reason why many of these marriages fail. A new survey by credit bureau Experian sheds some light on the subject and reveals that...
I need a credit card with a 0% APR to consolidate several of my credit cards into one payment. Please advise what card I can apply.
There are special credit cards that allow consolidation of other cards’ debts - the balance transfer credit cards. These cards usually come with a 0% intro APR on balance transfer offer. The zero introductory period varies, but as a rule it is between six months and two years. So you can find a credit card with...
The easiest way to find out if you have credit accounts under your name is to request a copy of all your three credit reports: Experian, Equifax, and TransUnion. The reports contain information about active credit accounts, its issuers, and the information about credit accounts balances. If you want to protect yourself...
To set a PIN on your credit card, you should call the credit card issuer at the number on the back of your credit card and request your PIN. After that, the issuer will mail to you your PIN. In the meantime, if you need cash, you can go to a bank office and present your credit card and picture ID.
The overall process of getting a credit card can take up to 30 business days. To know the status of your credit card applications you should contact the credit card issuer. A quick online search for the bank or credit card issuer's name should turn up a customer service phone number or email address. Banks and credit card...