There are many questions people have when facing credit card debt. Is it a good idea to continue using credit cards with balances owing? Does asking for a credit increase negatively impact a person’s credit score? Here are some credit card debt management tips that may help those in Connecticut facing these often complicated issues.
It is important that people understand the difference between “good debt,” such as student loans and affordable mortgages, and consumer debt that is best avoided. Avoiding incurring additional consumer debt is almost always a good idea. While it is not necessary for everyone, avoiding credit card use can help to curb spending.
Credit limit increases may be needed for a variety of reasons, such as the anticipation of a major purchase for which a person would like to use a credit card. Increasing the limit itself does not affect credit score. In fact, a higher amount of available credit with a lower debt load can increase a person’s credit utilization rate. This will actually improve a person’s credit score provided he or she doesn’t carry an amount owing on the newly available credit.
One of the best debt management tips is to stay up-to-date on figures such as amounts owning, available credit and credit score. Connecticut borrowers who have a better idea of their current situation will be better equipped to understand and respond to debt-related issues. Those who are considering bankruptcy due to overwhelming debt can benefit from the advice of a lawyer with experience in these issues.