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Home / Insurance / Managing Credit Cards in a Recession It Takes Maturity and Responsibility — Legal Insurance Blog — November 17, 2022

Managing Credit Cards in a Recession It Takes Maturity and Responsibility — Legal Insurance Blog — November 17, 2022

stockfresh_84926_swiping-credit-card_sizeS-300x200We might as well admit that we are at the beginning of a recession. There will be tough times ahead and the economic downturn will threaten the financial well-being of many people. Anyone can get through these troubled times, but it requires a level of maturity and responsibility. A primary challenge is managing your credit card carefully. It’s not too complicated, and a person can take a few steps to make credit card debt manageable.

  • Use cash when you can. Getting into debt is easy if you use credit cards for everything. To avoid this, try to use cash as often as possible for small things. This will help you stay within your budget and avoid overspending.
  • Don’t be lured by offers of “free” money. Many credit card companies offer 0% APR introductory periods to attract new customers. While this may seem like a lot, it’s important to remember that introductory rates will eventually expire, and you’ll have a higher interest rate if you still need to pay off your balance then. So only take advantage of these offers if you are sure you can pay off your balance before the introductory period ends.
  • Avoid using your credit cards for unnecessary purchases. Using your credit cards for non-essential purchases during a recession can be tempting, but you must resist the temptation! If you can’t afford it in cash, you can’t afford it, period. Stick to only using your credit cards for essential expenses and emergencies—everything else can wait until after the recession is over.
  • Plan to pay off your debts. Once you’ve reviewed your budget and identified areas where you can cut back, you should know how much extra money you can put toward paying off your debt each month. Come up with a plan to use the extra money to pay down your balances, starting with the card with the highest interest rate.
  • Know your limits. Knowing how much you can spend without going into debt is important. One way to find out is to create a budget and track your expenses for a month. Once you know your spending patterns, you can set a limit and stick to it.

Benefit from experienced help

Nationwide Prepaid Legal Services offers a financial health plan that can help during tough times. We have a nationwide network of certified advisors who deal with people’s common financial difficulties. Credit card processing is one.

A nationwide advisor will assist the plan member by doing a budget analysis and helping that person construct a manageable budget that allows expenses to be covered and some savings at the end. In addition, our advisors advise on how to manage credit cards and avoid unnecessary debt effectively. There is a community advisor in all of our client organizations.

We value our customers

Countrywide establishes a close relationship with all of our financial wellness clients. We work with their management staff and respond to issues immediately. Additionally, we ask employers to help us design their unique financial wellness benefits.

We have several options that include help with medical bills, college debt management, and bankruptcy management, among other services. We ask our customers to select the options that will be included in their plan. The choices are included in the superior membership services and streamlined administration. The consequence is a financial wellness benefit that provides excellent assistance to all plan members.

The coming months could damage the financial well-being of many. Following the tips mentioned above can help, and our advisors can provide even more advice for planning members. If you are interested in what we have to offer, you are welcome to contact us at your convenience. We can help your employees survive difficult economic times.

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