Paying off credit card debt can be a terrific feeling, and for many consumers, canceling that credit card once and for all is an even better feeling. But before you completely give up on using credit cards altogether, you may want to consider keeping your credit card account active, even if you don’t use it. Before closing out your account, consider some of the benefits of keeping it open:
An emergency can come up
It’s not usually recommended to turn to credit cards for financial emergencies—this is why it’s a good idea to have an emergency fund, so that you can avoid getting into debt. But sometimes, the unthinkable happens and even an emergency fund might not have all the money you need to take care of a large expense. It can be comforting to know that if you absolutely need to, you have a credit card that you can fall back on.
Your credit score can go up
When you’re comfortable with using credit cards again, keeping that credit card can help your credit score go up if you make small purchases now and then, but pay them off immediately. You just want to avoid carrying balances over into the next billing cycle—especially for large purchases that take up all of your available credit. Not only is this bad for your credit score, but it can result in credit card debt again. Instead, only make purchases that you know you’ll be able to pay off entirely in the same month. Even if you don’t have any interest in using credit cards in general, consider the importance of having a good credit score. If you ever want to finance a car or purchase a home, having good credit is imperative if you want to get approved for a larger loan. Even renting an apartment can be difficult if your credit score is poor or if you don’t have any credit at all. A credit card can be a good way to start small and build up your credit.
Do you need to take care of debt and accumulating bills, but don’t have the financial means? If you’re receiving long-term annuity or structured settlement payments, they might be helpful, but perhaps they’re not enough. If you’re hoping to just pay off all of your debt once and for all, Peachtree Financial Solutions may be able to help. By selling some or all of your future payments to Peachtree Financial Solutions, we can provide you with a lump sum of cash. Imagine how helpful it could be to just pay off some or all of that debt by receiving your structured settlement payments in one lump sum. Whether you want to sell all of your future payments or just a portion of them, Peachtree Financial Solutions can help. Contact Peachtree Financial Solutions today to learn more about selling future payments. We will be happy to answer any questions you might have about the process, and we can also provide you with a free, no-strings-attached quote.
Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.