Skip to content
United Settlement
  • Manage Your Debt
    • get-startedGet Started
    • settlementDebt Settlement
    • consolidationDebt Consolidation
    • debt-managmentDebt Management
    • bankruptcyBankruptcy
    • credit-cardCredit Card Debt
    • businessBusiness Debt
    • car-loanAuto Loan Debt
    • student-debtStudent Loan
  • Understand Your Debt
    • credit-cardCredit Card
    • business-2Small Business Debt
    • medicalMedical
    • loansLoans
    • umbrellaCredit Card Relief
    • interest-ratesInterest Rates
    • student-debtStudent Debt
  • Tools & Resources
    • faqFAQs
    • credit-cardCredit Guidance
    • calculatorCalculator
    • call-usContact Us
    • contact-usAbout Us
  • More
    • Debt Settlement
    • Debt Consolidation
    • Reviews
    • FAQs
    • About Us
    • Contact Us
    • Blog
    • Sitemap
    • Debt Relief by State
Professional Debt Relief Programs
Logo
United Settlement
phone icon 888-574-5454
client icon Client Log In
  • More
    • About Us
    • Reviews
    • Contact Us
    • Debt Settlement
    • Debt Consolidation
    • Debt Management
    • Business Debt Relief
    • Credit Card Debt Relief
    • Debt Relief by State
    • FAQs
    • Blog
    • Sitemap
Qualify For Debt Relief
Professional Debt Relief Programs
  • Manage Your Debt
    • get-startedGet Started
    • settlementDebt Settlement
    • consolidationDebt Consolidation
    • debt-managmentDebt Management
    • bankruptcyBankruptcy
    • credit-cardCredit Card Debt
    • businessBusiness Debt
    • car-loanAuto Loan Debt
    • student-debtStudent Loan
  • Understand Your Debt
    • credit-cardCredit Card
    • business-2Small Business Debt
    • medicalMedical
    • loansLoans
    • umbrellaCredit Card Relief
    • interest-ratesInterest Rates
    • student-debtStudent Debt
  • Tools & Resources
    • faqFAQs
    • credit-cardCredit Guidance
    • calculatorCalculator
    • call-usContact Us
    • contact-usAbout Us
  • More
    • Debt Settlement
    • Debt Consolidation
    • Reviews
    • FAQs
    • About Us
    • Contact Us
    • Blog
    • Sitemap
    • Debt Relief by State
United Settlement » Credit Card Debt » Credit Card Guide
admin October 11, 2017

Credit Card Guide

Credit cards play a major role in the fabric of the American consumer economy. In fact, there are now 196.5 million credit card users and 424.3 million active credit card accounts in the United States with an aggregate credit line exceeding three trillion dollars. If these numbers sound staggering, it’s because they are. The American consumer has been on a credit card spending binge not seen since the months leading up to the 2008 financial crisis. Accordingly, it is important that you behave prudently – and not get swept up into a pattern of reckless spending and paying only minimum monthly payments – so that you can avoid your own personal financial crisis.

See How to Improve your Credit Score.

The Most Commonly Used Credit Cards in the United States

The most commonly used credit cards are American Express, Visa, Mastercard, and Discover. People are using credit card more regularly everyday, with that said people are using cash less and less everyday. Credit cards give you flexibility, speed, and do not require people to walk around with a lot of cash to make a large purchase.

Benefits of using Credit Cards Responsibly

Let’s take a moment to think about why credit cards are good and what they can do for us when we utilize them properly. Credit cards, when we use them responsibly, help us build a positive credit profile when we demonstrate a consistent pattern of timely repayment over an extended period of time. A favorable credit profile, in turn, makes it easier to attract subsequent credit at favorable terms when we seek a mortgage, automobile financing, or personal loan.

A second advantage of credit cards is that they provide budgeting flexibility. Keeping a credit card account open permits you to manage cash flow throughout the month while allowing for more flexible timing on certain purchases that can be paid in full at the end of your monthly billing cycle. The extra time allotted between any credit card purchases and your statement due date can make the essential process of sticking to a written budget of your monthly income and expenses easier. The key here, however, is to actually pay each monthly credit card statement in full. It’s when we don’t do this – when we resort to paying only the minimum (or something close to it), that we plant the seeds of financial difficulties.

New to Credit Cards? Start Slowly

If you don’t have much experience with credit cards yet, or it has been some time since you had one, it makes sense to keep only one account open with a relatively low available credit line. Use the card sparingly and pay your bills in a timely manner as you gradually enhance your credit profile. Over time, as you build experience and comfort, it may make sense to pursue a higher credit line or a second credit card account. However, it will always remain important to maintain a measure of self-discipline over any level of credit card usage, so pursue additional credit only as needed for potential emergencies or special situations – not for extravagances.

Pay Your Credit Card Bill on Time Each Month

This may seem like an obvious point, but if you are to reap the benefits of building a strong credit profile, paying your bill on time is an absolute must. Therefore, if you tend to be forgetful, be certain to enroll in automatic bill payments. This is usually a simple process that can be implemented online from your account page. You should never be late or miss a payment, as doing either can result in fees charged to your account and damage to your credit score. Next, if your budget allows, pay your balance in full each month.

This is another crucial point, as doing so not only helps your credit score even further by keeping your credit utilization percentage low, but also saves you from the recurring problem of carrying a revolving debt balance from month to month. When you restrain revolving debt to a minimum, you protect yourself from monthly interest expense charges that can compound and result in the waste of thousands of dollars over time. An ever-expanding pile of revolving debt that comes with high interest rate expense charges can keep a person unhappily in debt for far longer than originally planned.

The Importance of Sticking to a Budget

One of the most beneficial things you can do for your financial well-being is to design and maintain a written budget that provides a measure of control over your financial situation. A budget is not meant to take the fun out of life, rather, it is meant to serve as a foundation for financial wellness. Get a clear picture of your monthly income and measure it against all necessary expenses – housing, food, transportation, utility bills, and so forth.

Make note of how much money may be left over at the end of any given month and remain alert to keep your monthly credit card charges below this level at all times. This way, you will be well positioned to pay your credit card bill off in full when it arrives. Only in those months when you find yourself in unusually burdensome circumstances should you resort to paying the minimum, and if this does happen, be certain to curtail credit card spending in the ensuing month. When you are once again on firmer ground financially, pay your balance off in full at the first opportunity.

One of the benefits of keeping a credit card is that it is fairly straightforward to track expenses by reviewing your monthly statement. In this way, it is easy to monitor how much you spent on a given day for a given purchase. Furthermore, there are online budget programs to which you can link your card that can categorize purchases and clearly reveal any negative spending habits that may be developing.

In addition to keeping you on budget and on the right track financially, an online budget program can alert you when there is any unusual purchasing activity in your account, thereby providing an extra layer of protection against fraud. If you do spot any unauthorized activity on your account, you likely will not be held responsible, provided you report the situation immediately to your credit card fraud department.

Keep in Touch with Your Credit Card Company

It’s always a good idea to get in the good graces of your credit card issuing company. The easiest way to do this is to become a reliably good customer by paying your bill on time and in full each month. This way, if the day comes when you want to inquire about a lower interest rate or higher credit line, the credit card issuer will see that you are a valued customer who they may want to work a little harder to please. Similarly, if the day comes when you hit a rough patch financially, having a good payment history beneath you can make a creditor more willing to work out a revised payment plan with you to make things more manageable.

Excellent

Based on 356 reviews.
Overall 4.4 out of 5 stars

View All Reviews

Buddy Ewing

December 28

Time and again, I did not know how to handle my debt

Time and again, I did not know how to handle my debt. Even when I paid my credit cards off, a few months later I was back in the same situation. But this year is different. I contacted United Settlement...

Lianne Finnegan

December 27

Business debt relief is what I needed when I contacted the United Settlement crew

Business debt relief is what I needed when I contacted the United Settlement crew. They are committed to helping people like me who requires more help with business debt problems. I had several loans out...

Wren Herrera

December 26

Student loan debt was the reason that I reached out to United Settlement

Student loan debt was the reason that I reached out to United Settlement. I had about 200K plus in student loan debt for my business degree. I recognized that I had to do something when I struggled to make...

Jardel Shah

December 20

There is nothing worse than falling ill and then having to deal with super expensive medical bills

There is nothing worse than falling ill and then having to deal with super expensive medical bills that you really do not have the patience or experience to handle. I was pleased with my experience with...

Iain Holt

December 14

I took out a few personal credit cards to open my boutique

I took out a few personal credit cards to open my boutique. When than money ran out, I went on to take out more loans for my business. However, this quickly turned into a disaster. Today, I now have a mountain...

Avaya Adkins

December 12

Who knew that auto loans were so negative for your credit lines

Who knew that auto loans were so negative for your credit lines? Especially, if they are not paid off right away. As a married couple, we had vowed to keep auto loan debt at bay. But, we found ourselves...

Lucien Rojas

December 07

I didn’t have a ton of debt when I contacted United Settlement

I didn’t have a ton of debt when I contacted United Settlement, but what I wanted from them was some information about how to handle my debt management. I knew that I needed some more information to get...

Madiha Matthams

December 04

Federal student loans were the reason I ended up at United Settlement

Federal student loans were the reason I ended up at United Settlement. I had about $200K to pay back and I was not quite sure where to tackle that debt once I got out of school. But I reached out to that...

Asim Horner

December 03

Everyone knows how horrible student loans are

Everyone knows how horrible student loans are. For me and my family, they had become more than just an annoying monthly bill. They had taken over our lives. That’s why I decided to take action and find...

Frankie Mckee

December 03

I wanted to be more informed about my own personal and business debt

The number one reason I chose to contact United Settlement was I wanted to be more informed about my own personal and business debt. When you have credit card debt, it can be extremely frustrating. Especially...

Justine O'Ryan

November 29

I cannot believe I was finally able to find a company to actually help me pay off my debt

I cannot believe I was finally able to find a company to actually help me pay off my debt! I thought I would forever be chained to debt. But United Settlement offered me multiple solutions for paying off...

Jerry Conley

November 21

What your money can do for you.

The great reviews that you have thanks.

Cathal Brett

November 19

Dealing with high interest auto loan debt was difficult for me and my wife

Dealing with high interest auto loan debt was difficult for me and my wife. We thought we got a good deal, but it actually was a horrible loan. So, we reached out to United Settlement, and they got to work...

Aliesha Ward

November 12

No one really wants to go bankrupt, and neither did my family

No one really wants to go bankrupt, and neither did my family. But fortunately, we did not have to go that route. It was our last resort, but United Settlement helped us figure out a way around bankruptcy...

Filip Rosas

November 08

I had been through about 5 different credit counseling agencies before I found United Settlement

I had been through about 5 different credit counseling agencies before I found United Settlement. I had read through their reviews and made the decision to move forward with them. I also was so impressed...

Susanna Fasenmyer

November 07

Save time and money

Just what I needed, already had a company I was working with and I switched because I was able to same some money. Brian and Alfred were really nice and helpful

Warren Hutchinson

November 07

As a business facing some unwanted financial difficulties

As a business facing some unwanted financial difficulties, we were at a loss for what to do next when our debt started to soar. We took a closer look at our financial situation by contacting United Settlement....

Bobbi O'Quinn

November 02

I had no clue how to create a debt management plan

I had no clue how to create a debt management plan and in fact, I didn't even know what a debt management plan was. Fortunately, I reached out to United Settlement before I had too much debt to tackle....

Dawn Mercer

October 31

Being burdened by debt is one of the biggest struggles we faced as a family

Being burdened by debt is one of the biggest struggles we faced as a family. But these people at United Settlement were very helpful in deciphering the different debts we had and then coming up with a debt...

Forrest Guest

October 29

Student loan debt was my worst enemy before I ran into United Settlement

Student loan debt was my worst enemy before I ran into United Settlement. I really thought I would just have terrible credit for the rest of my life because I will never get out from underneath it. It was...

Are you in debt? we can help

  • Amount
  • Contact

How much do you owe?

Related to: Credit Card Guide

  • Credit Card Relief
  • Forgiveness
  • Solving Your Credit Card Debt Problem
  • Credit Card Debt
  • Too much credit card debt
  • Average Credit Card Debt
  • Credit card interest rate charges

What to do if Things Get Tough

By now, it should be pretty clear that the best course of action to take with credit cards is to carefully monitor your spending and to pay your bills on time each month, ideally in full. In this way, you can enjoy the budgeting flexibility that comes with a proper use of credit cards while simultaneously enhancing your credit profile. However, sometimes people do get into trouble, and it’s important to know what options are available should this happen to you.

If you find yourself in the position of not being able to manage your credit card debt, the first thing you should do is reach out to a reputable credit counseling agency who can steer you in the right direction. Following an initial phone consultation in which you will be asked a series of questions detailing your specific set of financial circumstances as they relate to your income, expenses and debt levels, your credit counselor will advise you as to the best course of action. Among the more common solutions is the Debt Management Plan (DMP), which involves streamlining multiple credit card payments into one simple monthly payment to the counseling agency.

DMPs usually result in lower interest rates and a lower overall monthly payment. Another possible solution is the Debt Consolidation Loan , which is utilized to pay off all of your creditors and typically results in an overall lower interest rate and monthly payment. Finally, if you’re already delinquent on your payments and don’t envision things getting better, enlisting the help of a debt settlement firm may be your best option. With Debt Settlement, creditors often accept lower balance payoffs on credit card accounts that they deem as approaching charge-off status, at which point they represent little to no value to the creditor. If you get into trouble with credit cards, regardless of the solution, getting help from seasoned, reliable professionals represents a significant step in the right direction as you veer away from the frustrating and recurring cycle of revolving debt and high interest expense.

Prevention is the Best Cure

Credit cards can be a useful financial tool when they are used wisely. Think of them as vehicles for building a strong credit profile and providing some added monthly budget flexibility. Always monitor your charges carefully, staying within the confines of your written monthly budget so that you are always ready to pay your bills on time and in full whenever possible. Never consider your credit lines as money that you actually “have,” but rather, keep your credit card in reserve mostly for financial emergencies and special situations. When you combine a healthy dose of self-discipline with some careful budgeting, you and your credit cards will have a mutually beneficial and symbiotic relationship.

Should I close out credit cards or other available lines of credit that I don't really use?

No – your credit score would go down if you did this. Your credit score is in part determined by your credit utilization ratio – that is, the percentage of available credit that you have actually borrowed. The higher the credit utilization rate, the lower your credit score. Therefore, keeping unused available credit lines open will lower your credit utilization rate, and this is a good thing for your overall credit score and profile.

  • Contact Us
  • 241 West 30th Street
    3rd Floor
    New York, NY 10001
  • (888)-574-5454
  • [email protected]
  • Privacy Policy
  • Terms & Conditions
  • Debt Relief Services
  • Debt Settlement
  • Business Debt Relief
  • Credit Card Help
  • Debt Consolidation
  • Debt Management
  • Student Loan Help
Learn more about debt relief


    • facebook
    • Google Plus
    • Twitter
    • YouTube
    • Instagram
    • Linkedin
    • facebook
    • Tools & Resources
    • Contact Us
    • About Us
    • Blog
    • Debt Calculator
    • Frequently Asked Questions
    • Sitemap
    • Reviews
    • Client Login
    Free Savings Estimate
    Apply Here
    Clients who stay according to debt relief program can realize approximate savings of 50% before fees, or 30% including fees, over 12 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for reasons such as: their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period. We do not assume consumer and/or business debt, provide tax, bankruptcy, accounting, legal or credit repair services/ advice. Our program is not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. If you have any additional questions please contact us.
    Copyright 2020. United Debt Settlement, LLC