One Good Thing About Having Bad Credit

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Perhaps, you started with a good credit score but eventually your financial ability to pay has been overrun by your spending. First of all, you need to know that this happens to countless credit card holders and you are not alone. One day you’re paying your bills promptly, the next day you find your debt piled up and overwhelmingly impossible to pay off. Although bad credit is commonplace, it’s not always wise to be in this situation. In fact, if you can avoid being slumped in this financial dilemma, it’s certainly great. Aside from being costly, having a poor credit restricts your spending capacity.

Getting hooked into the debt cycle can be a strain on your financial resources which can lead to bankruptcy, something that you certainly do not want to happen. But for some people who have been in this situation, bad credit is not that bad. In fact, it even helped them save some money.

According to some credit holders, declaring bankruptcy has actually cut off at least 40% of their debt. Not only that, you can even rebuild you credit score after paying off your debt. This can actually be done through settlement and negotiation with the credit company.

For some people, their very bad credit rating has caused their service to be disconnected. This means that they need to pay in cash every purchase they make. Since they can no longer apply for loans, they have to save for whatever they want to buy which is actually good. Moreover, they do not need to pay any dues on a strict schedule.

Indeed, bad credit is not that overly bad. However, this does not mean that you should stop paying your bills. If you start this habit, you would surely find yourself in a deeper financial dilemma. In the end, the challenge in owning a credit card is in developing discipline in the use of it. With the economic crisis still unabated, I recommend paying everything with cash.

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