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Store credit cards can cause credit trouble this holiday season

The holiday season can be a time of great joy for many Tennessee residents. It can be a time to get together with family and friends, to party, to eat and to exchange gifts. Many of these things are wonderful and people experience great joy. However, the holidays can also mean big spending for many people. Not only are there gifts to buy, but people may have to pay for travel, pay for extra food or for holiday attire. These expenses can add up and create serious financial challenges for many people.

It can be easy for people to rely on credit cards during the holiday season. In fact, data has shown that many people have turned to credit over the second half of the year. Reports claim that $21.3 billion was charged to credit cards in the United States between July and September of this year alone.

Credit card spending can be a huge problem for people who cannot afford to pay their bill each month. Store credit cards can be even more difficult to manage. Not only do these cards require an inquiry into a person's credit report, which can temporarily lower the score, they also often charge extremely high interest rates, even to people with good credit.

Store cards lure people in by offering deals to consumers to open the cards. However, these deals can also encourage people to spend more money than they would have without the card. This can create a cycle of debt and a credit card trap.

People who are facing serious credit card debt may have legal options to help them reach financial security. By using the right debt relief options, people can get the fresh financial start they need. People should be aware of these options.

Source: Nooga.com, "Beware of holiday credit card debt traps," Chloe Morrison, Dec. 10, 2015

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-954-7180
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