Can I Continue To Use Credit Cards After A Debt Settlement?

Debt settlement attorneys will tell you that according to recent stats, more than 40 percent of all people in our country spend more with credit cards than they make in salary each year. That would mean that these people each and every year are adding to their debt.

If you keep doing this year after year, you will find yourself in $25,000 in debt or more, especially if you suddenly lose your job in the current economy.

Once you decide on debt settlement you will be back on the track to getting debt relief.

But, you will be advised to stop using your credit cards from your debt settlement attorney.

Whether you CAN use your credit cards or not depends on the credit company and how much debt you have piled up on that individual card.

Some will feel burned by getting only half or what you spent back through debt settlement and some will want to get more money from you since you settled for less. It depends. Either way, a debt settlement attorney will walk you through the process so you are doing the right thing.

The First Step to Debt Relief
Even if the credit card company, much like a casino that you just took money from, wants you to keep using your cards after debt settlement, a debt settlement attorney will advise against it.

Some respectable debt settlement attorneys won’t even take your case if they fear you are going to rack up debt again once you finish debt settlement.

They are trying to help you and that will take discipline on your part.

The best thing to do is to cut up and throw out your largest credit cards.

Some companies will drop you after debt settlement, especially if you just cut 60 percent off of what you owed.

Still with the economy, people are spending less, and if you show a willingness to charge again, they will let you use their cards to squeeze some money out of you.

Debt Settlement attorneys will advise you not to do this.

Credit for Emergencies

If you absolutely need to have a credit card, the best thing to do is keep the one with the lowest interest rate and keep that card for emergencies.

A financial attorney will tell you that while you are paying off your debt in two to three years, you probably should not be using those cards.

But if you need a card for emergencies like food and shelter, you should definitely keep the one that has a rate below 20 percent. Since you are in a lot of debt, your rates might be high and your credit score will be low.

Remember credit card companies act as a business so if they will continue to let you use their card after debt settlement, it is probably because they will make money off of you even after you didn’t pay in full.

You need to have restraint and cut what you spend with your credit.

If you have any questions, you should contact a debt settlement attorney, who will go over all the details of getting debt relief through debt settlement with you.