These days, many credit card companies offer perks and rewards for using their cards. By using credit cards for purchases, card holders can benefit from these rewards while also building credit. However, overspending with credit cards is incredibly easy to do, and it doesn’t take long for debt to become overwhelming and lead to bankruptcy. Here are a few ways Michigan residents can avoid overspending and manageable levels.
Use only one card
Many people think that using multiple cards is good for maximizing rewards. However, using multiple cards will only complicate things for those who are struggling to keep debt under control. Sticking to one card will make it easier to track spending while also making it less likely to pile up high levels of debt.
Set a spending limit
Without a limit on discretionary spending, it is hard to know when spending has gone overboard. Take time to figure out how much income is coming in and how much goes toward fixed expenses versus how much goes to savings and what is left over. Then, set limits on how to spend the spare cash. This can be a guide to avoid overspending.
Remove cards from online accounts
It’s no secret that online shopping is incredibly easy these days. Many retail sites store the user’s credit card information to make future purchases even more convenient. Those who are trying to rein in spending should remove all their credit card information from online sites to avoid making spontaneous and unnecessary purchases.
When debt becomes too overwhelming and there’s seemingly no way out, the best option may be to file for bankruptcy. In particular, Chapter 7 bankruptcy can discharge many types of unsecured debt, like credit card debt. However, bankruptcy does not come without consequences. Michigan residents who have questions and want to know more about bankruptcy may want to consider contacting a seasoned bankruptcy attorney who can evaluate an individual’s case and provide guidance.