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Are you falling prey to common credit card myths?

While many debt experts say the best way to live is without credit cards or credit card debt, that's not always a possibility. Plus, you might already have a good bit of credit card debt you're trying to handle, and simply telling you to get rid of it isn't helpful advice. If you're struggling with credit cards or other types of debt so much that you can't make ends meet or worry about putting food on the table, then you might want to consider the merits of bankruptcy.

No matter where you are in dealing with credit cards, it's important not to fall prey to myths and misunderstandings about credit cards and how they impact your financial standing. For example, many people believe that the number of credit card accounts you have at any given time can negatively impact your credit score. In reality, you can have many open cards and still have a high FICO score as long as you make regular payments and don't run up the balances on them all. Most financial experts say two is a good number for credit card accounts for many people because you don't have to keep track of many balances and you have at least one backup.

Another myth is that keeping a balance on your cards builds credit history and improves your credit score. That's not true, but carrying over a balance does cost you money in interest and finance fees every month. Keeping an account open and paying the balance every month has the same or better impact on your score without costing you more money.

Dealing with credit card debt can be stressful or tedious, and once it reaches a certain level, many people start to ignore it. Ignoring debt is never a good way to solve the problem, though. If you are struggling to manage your credit card debt, take time to face the problem head on and consider talking to a lawyer about relief options such as bankruptcy.

Source: Time, "5 Credit Card Myths You Shouldn’t Believe," Taylor Tepper, accessed Dec. 02, 2016

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Joshua Z. Goldblum, Attorney at Law
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