Credit cards can be a useful financial tool, but only when they are used correctly. From shopping online to making travel reservations, there are plenty of tasks that are easier if you have a credit card handy. Not only that, but these cards also provide one of the easiest ways to build and maintain a solid credit history, so you can rent or buy property, purchase a vehicle or even get that job you want.
If you’re going to use credit cards, though, it’s essential that you understand exactly how they work and what it takes to manage the debt they generate. If you have a question about credit cards, chances are someone else has already asked that question, too. Here are answers to the most common questions that Debt.com receives about credit cards and credit card debt.
If you can’t find what you’re looking for here, you can ask our experts directly.
Q:Can anyone garnish my Social Security checks for credit card debt?
Q:Can I go to jail for not paying credit cards?
Q:Does debt consolidation affect buying a home?
Q:How can I get a credit card with bad credit?
Q:How do credit cards work?
Q:How do I cancel a credit card?
Q:How does credit card interest work?
Q:How do secured credit cards work?
Q:How long do I have to pay off a credit card balance?
Of course, this flexibility with revolving debt payments only applies if you keep your account current. If you fall behind, this starts the countdown before the creditor charges off your account and sends it to collections. You generally have between six and nine months to catch up before your account goes to collections. There are some other milestones along the way that you want to avoid, such as when penalty APR applies.
Q:How many credit cards should I have?
Q:Should I use a 401(k) or IRA to pay off credit card debt?
Q:What happens if I stop paying my credit cards?
Q:Who is responsible for deceased parents’ debt?
Q:Which credit card should I pay off first?
Tired of struggling to pay off credit card debt on your own? Get help from a certified credit counselor.
Article last modified on October 4, 2022. Published by Debt.com, LLC