Credit Card Debt

Paying Off Credit Card Debt? Avoid Making This Common Mistake.

Paying off credit card debt can be hugely rewarding. Just last year, Americans broke the record for credit card debt paid off, coming in at $83 billion. However, when it comes to paying credit card debt, many Americans make a mistake that can have a lasting effect on their credit scores.

In an effort to avoid amassing greater debt while preparing to pay off the existing debt, many will halt the use of their credit cards. This can result in the closing of your credit card account due to inactivity. When a credit card account is closed, your credit report can seriously suffer. This is due to the debt-to-credit ratio. This metric represents the amount of credit utilized versus what credit is available for the consumer. When losing a line of credit due to inactivity, your available credit declines and the distance between what is used and what is available increases.

In order to prevent this mistake when paying off credit card debt, consumers should continue to use their credit cards, but in the proper way. The key to maintaining your credit spending is to use less than 30% of your limit but more than 10% to avoid a limit cut.

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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at

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