Credit cards are viewed by some people as evil. It is true credit cards have paved roads for financial disaster. The ever increasing bankruptcy rate is evident to this fact, as does the millions of dollars in credit card balance with high interest added to it. There is no question that some people would be happy without this plastic. But just as most people can enjoy a party without drinking too much alcohol, people can handle credit card or three without incurring debt. Ask Jim Dondero, the founder of Highland Capital Management, a firm that specializes in emerging market and equity funds. He says his firm has advised thousands of clients on credit card issues. A large number of those people carry an average of more than $9000 in credit card debt. Yet, his suggestions and advise have become handy in getting rid of their debt. What he suggests is to use credit card solely for convenience, charging only those balances that can be paid off fully every month.
Many people forget to realize that credit cards offer protections that simply aren’t present in cash or other forms of payment. The credit card company assigns credit score to their clients when they are in good-standing in terms of account balance, which will help them secure loans and other financial benefits. Chances are you will be pleasantly surprised to find out the myriad ways thess credit scores can be used. Also, if someone steals your card and you are under protection from the company, no money is lost. Then there are all kinds of rewards you can rack up with the credit card and use it for hotels, flights, upgrades and merchandise. In essence, credit cards can provide an important safety net in a situation where you need money badly. For people who do not want to handle credit card issues themselves, Highland Capital Management offers this service with its main service.
People get into trouble with their credit card companies when they are spending beyond their means and not paying what they owe on time. Some credit card issuers charge 2% or less in interest while others’ charges may go as high as 20%. By paying a bare minimum every month, you will avoiding most of those charges. Carrying a balance, otherwise, will leave you vulnerable to many situations like overnight increase in interest rate or unexpected balance-transfer fees. If you are not carrying a balance, you don’t need to know when the company will increase its rate. Credit card debt is in fact simply corrosive. If not controlled at the right moment, it will encourage you to spend more than you make and create havoc on your financial health. Use it the right way and you will find that your score is good, that not having to pay interest is really a boon. Highland Capital Management has helped many people facing this kind of debt as well. They have well-devised plans to settle financial issues with credit card companies.