Managing Credit Cards During Inflation It is Easier Than You Think — Legal Insurance Blog — September 29, 2022


The inflation rate did go down last month, but we are still experiencing rising prices, more than we have dealt with for decades. So, these can be challenging times for those who use their credit cards.

Telling people not to use credit cards is unrealistic. Most in-store shopping is done with plastic because it is safer than carrying cash. Online purchases all require credit cards to close the sale. Regrettably, credit card interest rates are the only ones that will not go down. Those double-digit fees are creating large holes in the financial wellness of the average consumer.

The only advice that most people know about managing credit cards is either not using them, which we know is impractical, or simply trying to pay it all off in one major stroke. That, too, is not a good idea in a time of inflation. Rising prices may require an individual to live from paycheck to paycheck. Therefore, they need some guidance to put their credit cards under control. That is the service that financial professionals can provide.

A seasoned counselor can offer the expertise that gains greater control of those credit balances. The suggestions are essential in this time of rising costs. Countrywide Pre-Paid Legal Services would like to assist people in their struggle to keep debt balances manageable. We have a financial wellness plan that folks can use.

We Rely on Money Veterans

Countrywide has a nationwide network of certified counselors. These are experienced professionals who deal with everyday economic issues that ordinary consumers confront. In addition, we have a counselor in the community of every Countrywide financial wellness client. We encourage one on one conferences and scheduling a meeting with a counselor is easy.

They Offer Valuable Suggestions

A Countrywide counselor will do a budget analysis to investigate a person’s cash flow. Then, existing debt obligations such as college loans are considered. The Countrywide counselor will then work with the financial wellness plan member. Together they develop a strategy for managing credit cards.

The counselor might make the following suggestions:

  • Electronic transfers for minimum payments. Financial gurus recommend minimum payments for large credit card balances. We think it is a promising idea, but we know that there is a chance that an individual might miss payment deadlines by accident. Scheduling electronically transfers a person’s bank accounts to the credit card company means the money arrives on time, and a person avoids late fees and maintains a strong credit rating.

 

  • Using the rewards constructively. Credit card companies will give reward points and cash for using credit cards. Some people have large piles of reward points and have not used them. It is wise to take those rewards and the money and use them to buy Christmas or birthday presents. That way, you do not have to charge the gifts to your credit card and use what you already have.

 

  • Consolidation. It simply means taking several credit card balances and having them all credited to one card. Creditors encourage this by offering low interest over a given period. It is not a bad idea, and a counselor can help a person shop around for the best consolidation deal.

 

Client Involvement Is Essential

Countrywide wants to offer financial wellness plans everyone in an organization can use. We make that happen with the help of the prospective client’s management.

We discuss all our benefit options with the decision-makers. We answer their questions and point out the benefits each option can provide. Then, Countrywide steps back. A client’s management will determine what options will be in their financial wellness plan. We include that in the final plan document, and Countrywide will provide member services and administration of the benefit.

The result is the assistance employees need to manage their credit cards. It is a well-appreciated employee benefit. If you want to know more about what Countrywide can do, please contact us at your earliest convenience. What we provide is something all your employees can use!



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