Debt management agencies like Freedom Debt Relief are made available for people with bad debts so that they may get the assistance they need to ensure that their debts are paid under the guidance of professionals. Other than having their debts reduced by way of negotiations with their creditors, participants registered under these debt management companies may also be required to attend a series of credit counseling in order to educate them on the importance of healthy finances so they may avoid accumulating more debts that they cannot afford to pay in the future. These credit counseling sessions are often in the form of discussions so participants may share their experience with their overwhelming debts and their way of digging themselves out of such situations.

Generally, many people who have participated in such programs often avoid using their credit cards especially during holiday seasons. Some even go to the extreme and cancel their credit card accounts altogether. Many experts may advice not to cancel credit card accounts because it may cause a negative impact on credit score and rating in general. More and more people are avoiding the use of credit cards probably simply because credit cards were the reason they got themselves into financial trouble in the first place. They became credit card abusers instead of users. The temptation of credit cards may surpass any other temptations many people have ever encountered. The convenience of having to simply swipe this magic piece of plastic to make a purchase may somehow seem liberating therefore it may have to be avoided to prevent further damage.

Another reason many people seem to abandon the idea of using credit cards to make purchases may be due to the endless cases of identity thefts all over the country especially when it comes to dormant credit card accounts. It may be both mind-boggling and annoying when you find out that your credit card is being used excessively in California when you have never stepped out of your hometown in New England. Sometimes you may not even notice that someone else has been using your identity to make purchases until you receive a notice from your credit card company demanding that you make payments on a credit card that you only use once a month. When this happens, the hassle of having to prove to your credit card companies that you did not make those purchase can be so troublesome that it would be better to simply avoid it altogether.

Many people are also becoming more aware of maintaining healthy finances. Credit cards may promote exactly the opposite because they encourage impulse buying. Basically without a credit card, you may not have the inclination to buy something that you cannot afford because it would mean physically removing cash from your wallet to pay for it and the amount of cash you have would physically be reduced as well. Credit cards do not do that. They may even give you a false sense of security that you could probably afford to pay for the purchases you make even when you are spending way more than you actually earn. Many people are more aware of the dangers of credit cards and the damages they could do to their financial well-being therefore many people are also abandoning the idea of making credit card purchases altogether.

Financial health awareness has been on the rise since the recession hit our shores. Credit card companies are consistently and persistently reaching out to get new customers as many people are now resisting the temptation to sign up for a new credit card because of the financial hazards it may cause. Avoiding credit cards may be easier for some than others but the effects of doing so on financial health may be worth it.

Author Bio: freedom debt relief

Category: Finances
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