Secured Credit Cards

The situations that lead an individual to the point of considering bankruptcy vary immeasurably. One common source of financial distress, however, is an over-reliance upon credit cards to pay for everything from living expenses to urgent needs. To people in this situation, the thought of taking on another credit card to repair a credit rating may seem bizarre. But for people whose situations have improved somewhat, a secured credit card can be a useful tool.

There are many different options available to resolve an unwieldy debt situation, and a skilled and experienced attorney can help you to identify the method that is best suited to the nature of your current debts, income, and assets. To learn more, contact the Arizona bankruptcy lawyers of the Harmon Law Office, LLC at 480-829-0494.

Important Considerations

Important things to consider before seeking a secured credit card:

• Can you realistically afford to make the initial deposit?
• Can you consistently and reliably make on-time payments?
• What fees are associated with a particular card?
• Will the financial institution report to all three credit bureaus?

Secured credit cards are not for everyone, and not all secured credit cards are advantageous. Part of the difficulty that many debtors have is the tendency to regard the funds that they have access to on credit as something like “free money.” The reality, of course, is that fees and interest are attached to holding a card and to every purchase that is made.

Secured credit cards forge this link clearly, as they are granted by financial institutions in exchange for a deposit equal to the credit limit. Effectively, you are buying a credit card and the opportunity to rebuild your credit. In time, if you manage this account well, your bank or credit union may raise the limit or return your initial deposit.

Contact Us

We know that you did not intend to end up in your current state of financial distress. Let us help you to find your way out of it. Contact the Arizona bankruptcy lawyers of the Harmon Law Office, LLC at 480-829-0494.