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While credit cards may not always be thought of in the same context as personal loans or loan consolidations, they are, nonetheless, nothing less than loans of a different kind. Typically, people think of credit cards and their associated debt as an anchor which they've managed to tie around their own neck and then toss overboard. And it's true: revolving plastic debt, after "sneaking up" on a consumer, can have the effect of sinking a financial ship. However, existing credit cards can also serve as a "tucked away" source of emergency financing---especially if a person's credit record is later damaged to the extent that the prospect of qualifying for bank or finance office loans is practically nil. It's for this very reason that individuals who know that they are about to enter into a precarious financial period (such as applying for, or appealing a denial of, disability benefits) might wish to obtain additional credit cards and then...not use them. Except, of course, in cases of emergency. What sort of emergency could justify the use of a credit card for someone who has no income and is waiting on benefits to be authorized? There are a number of justifiable reasons, including, but not limited to, the payment of a utility bill, the payment of a rent bill, payment for medications, and even payment for food items. Though, on the one hand, it would not seem advisable for an individual in dire financial need to incur yet more consumer debt, the truth for individuals seeking benefits is simply that they need to hang on until their case is won. An extra credit card (or two) could potentially, in rough financial times, make all the difference between staying afloat financially, or sinking completely. And since the unfortunate truth about the SSA system is that most claims will take two and a half to three years to complete, rough financial times will certainly be on the horizon for the majority of applicants. However, individuals who employ this strategy of obtaining additional credit cards to "lay back" for future anticipated emergencies (which are inevitable in these cases) should be careful to select cards with either low annual fees, or no fees whatsoever. Also, care should be taken to find cards with the lowest possible rates and lowest fee charges for services such as atm withdrawals and cash advances. |
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