Is Having Consistently Zero Credit Card Debt a Good Idea?

Is Having Consistently Zero Credit Card Debt a Good Idea?

Credit card debt is common but also something many people wish to avoid. No one wants to find themselves buried in deep credit card debt, yet this continues to happen. Some people consider the strategy of maintaining consistently zero credit card debt each month, while others question whether this technique is helpful. If your credit card debt has led to bankruptcy, then consider asking a Chattanooga bankruptcy attorney for help.


As many people may already know, credit card debt builds through interest rates. This means the longer people wait to pay off money spent on a credit card, the more money they owe in total. Credit cards are great for spending money you do not have right now but can lead to significantly more money owed if not managed properly.

Some people take the route of a transactor and only use credit cards for their benefit. This may range from rewards points to building a strong credit history. What transactors do is the technique of always paying off all credit card debt at the end of each month.

The method of always paying off debt at the end of the month prevents interest rates from increasing the total amount due. This is a way around paying interest rates. Not only does this save money but this also builds good credit. Revolvers, on the other hand, tend to carry credit card debt for several months.

There are plenty of other credit card benefits that can be taken advantage of by using the transactor method. These include tracking spending, always having the ability to spend money in an emergency, and faster transactions. Certain credit cards with rewards points may offer cash back.

However, with positives come negatives. Some of the main negatives of using credit cards include increased spending, the risk of falling into debt, and potentially owing more than you initially spent.


While there are financial risks to using a credit card, there are also ways out. If you find yourself in deep credit card debt, there are multiple ways to escape credit card debt that may help. One of these ways is to make higher monthly payments whenever possible.

Many people benefit from tracking their monthly spending to cut unnecessary spending until they are ahead of their debt. Cutting spending for a temporary amount of time might be all it takes to gain back control. Credit counseling services are available through credit unions and nonprofit agencies that can help guide you out of debt.

Credit card debt consolidation can simplify payments on multiple cards with one potentially lower interest rate. Bankruptcy is often the last resort when credit card debt can no longer be paid.


Do not panic if you think your finances might be headed towards bankruptcy. Call us today at Tom Bible Law by dialing F:P:Sub:Phone} for a consultation about your financial situation. Our Tennessee bankruptcy lawyers are prepared to assess your circumstances to find the best bankruptcy options for you. We are located throughout the Tennessee cities of Chattanooga and Tullahoma.

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