The Most Commonly Asked Question of the Day

“Can I keep a credit card out of the program to be used for minor expenses each month or if there was an emergency?”  The unfortunate, and fortunate answer, is no, you cannot continue to use credit cards while in a debt settlement program if you want to receive favorable results.

The reason why I say the answer is unfortunate is because I understand the comfort of having an emergency credit card handy.  Like most Americans I began using credit cards the day I turned 18 and was set loose on a college campus full of low-interest, introductory credit card offers.  Relying on credit cards for your daily needs and desires is a hard habit to break and like most other vices such as smoking, it is hard to quit cold turkey.  We probably live in one of the most superficial and materialistic times in history and this has been heavily influenced by the credit card companies’ clever marketing message that tells us it’s okay to acheive the American Dream on credit or you can have your cake and eat it too as long as you are willing to pay for that cake 10 years from now because that’s how long it may take you to pay off that credit card bill.  When I realized this, I realized the comfort of using credit cards is not all that comforting after all.

Even though the credit card habit is hard to financially and mentally break, it can be one of the most rewarding and liberating things you can do for yourself.  You are no longer subject the credit card companies’ change in policy, increases in interest rates or minimum payments.  You can plan your life around goals like retirement, a dream house, paying for your child’s college education instead of planning your life around making next month’s minimum credit card payments.   

From a debt negotiation standpoint, we simply cannot help you get out of debt if you continue to use debt.  Our goal is negotiate with your creditors, establish your financial hardship, and work out a settlement arrangement for you.  From our experience, your creditors are likely to review your credit activity during this process.  If they see you are still actively using credit cards they may question your commitment to the program and ask themselves, why should we allow your client to pay us less than she owes, when she is still accummulating debt and paying those creditors in full?   

As for emergencies that may come up during your program, there are often ways to work around those emergencies without relying on credit cards.  Our clients often contact us when they have an unexpected expense and we review their options, review their expenses, and find ways to rearrange their budget.  We will help you through your emergencies as best we can.  So if you have a fear of not being able to use credit cards, think of the thousands of people Provanta has helped in the past 15 years and believe me, if they can get through 2-3 years without credit cards, you can too!  

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