First Credit Card Advice from Bankruptcy Attorneys
For all those opening your first line of credit, listen up. As bankruptcy attorneys in Las Vegas, we know what can happen when credit gets out of hand. It is an understatement to say owning a credit card is a massive responsibility.
However, if properly managed, credit can enrich your life. Whether using the card to buy a car or home, strict management over your credit card is key.
Avoid declaring a later bankruptcy—Las Vegas or elsewhere— with these helpful tips for first time credit card users:
Start with Small Purchases
Instead of maxing out your credit card immediately on some extravagant gift, start with small purchases. It will give you a chance to keep up with the interest and build your credit. Small purchases include anything from coffee, meals out or an article of clothing. The key is to be conservative in your purchases.
Think about making purchases you can pay off the next day. Extravagant purchases you can’t afford will increase due to interest, which can rack up fees and debt.
Have Money Saved Up
Consider your credit card as an investment in yourself. To invest you will need capital, which comes from saving your paychecks and any supplemental income you receive.
Most people take out credit cards during a time of need, such as paying for medical or car bills. This is fine if you have an income and those are you only bills, but when student loans kick in and you are start paying for a car and cell phone, you’ll find money tight.
Give yourself breather room and have the cushion of capital, or you may end up calling a Las Vegas lawyer soon enough.
Get a Secured Credit Card
A secured credit card is a regular credit card, but the credit user leaves a deposit in case they happen to miss a payment. This is a great starting card for beginning credit users and people who have declared bankruptcy in Las Vegas.
Make a Budget
For first time credit card users, they may subsist on a small allowance or part-time job. While their take home pay may not be large, it is still an income to create a budget around.
Compartmentalize your money into different categories, with a priority of what you need to pay versus what you want to buy. If you exceed your budgets anywhere, then you know where to tighten your control over your money.
If you need a budget app, check out Mint.
Need a Bankruptcy Lawyer in Las Vegas?
Credit can be a treasure or a burden. If you feel it has become a burden, then there are ways out and lawyers in Las Vegas to get your life on track.
If you want to declare bankruptcy in Las Vegas, Nevada, contact one of our Las Vegas bankruptcy attorneys. Our Las Vegas lawyers will give you a free consultation for the right path in life.