Avoiding getting into debt is one of the best ways to make sure you never have to face bankruptcy again. If you’re considering bankruptcy now, your attorney can help you learn about your options. However, when your bankruptcy is complete, you’ll need to make sure you don’t make the same mistakes again. So, what should you never do with your credit card?
First, don’t ignore the statements you’re sent. There are many reasons why you shouldn’t, ranging from noticing late fees to catching odd transactions that you may not have completed. You can also keep an eye on your balance and make sure you’re not overspending.
Never use a credit card without permission, either. Whether it’s a loved one’s card or one you find, credit card thefts or fraud can land you in serious trouble. If it’s someone’s that you know, then you could find yourself struggling in your relationships because of bad habits and racking up debt that isn’t in your name.
If you start building up credit card rewards once you’re able to access credit cards again, make sure you don’t sell the rewards to pay off your debts. Things like airline tickets or hotel reservations are not normally transferable, so you could be in trouble with the companies providing them to you. Your remaining points could be taken away, and if you sell the reward, your buyer could find that he or she has cancelled plans when the transaction falls through.
These are a few tips you should follow to stay on the right side of the law with your credit cards; remember to only use what you have and can pay back to stay on track.
Source: Credit.com, “3 Things You Should Absolutely Never Do With a Credit Card,” Jason Steele, Oct. 26, 2015