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Credit card debt may be okay in certain situations

People in Pennsylvania are generally aware that debt on a credit card is undesirable. A majority of credit cards charge high interest rates, which makes it expensive to maintain a balance on a card from one month to the next. Credit card debt may also negatively impact one’s credit score, especially if the person’s cards are maxed out. It’s best to use credit cards in only a few select situations.

Credit cards are appropriate to use in a major emergency. Emergencies may include having a car break down or dealing with a medical crisis. In addition, some people use a credit card because they earn outstanding rewards each time they use it. However, if a person decides to max out a card in order to collect a plethora of rewards, it’s wise to pay this balance off prior to the next billing cycle to prevent it from hurting his or her credit.

Credit cards may also be a huge help when a person is unemployed for an extended period of time. This is particularly true if the individual’s emergency fund begins to dry out. A credit card can help a person to cover the cost of basic needs, such as fuel and food.

A credit card may also be attractive if the company is running a promotion where it is charging 0 percent interest. If a person maxes out the card but pays off the balance before the period of no interest is up, he or she can save dollars in interest in addition to eliminating balances on other cards -- thus improving his or her credit score. At times, credit card debt can get out of hand, and there may seem to be no way of paying it down in Pennsylvania. Personal bankruptcy is one way to remove this debt in a responsible way and improve one’s quality of life financially.

Source: USA Today, "The Only 4 Times You Should Max Out Your Credit Card", Lindsay Konsko, Aug. 9, 2014

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