Avoiding Debt Through Proper Credit Card Use

Asset Recovery Associates pic

Asset Recovery Associates
Image: arainc.us

 

Asset Recovery Associates, Inc. is a national collection agency that works with both consumer and accounts receivable management clients. Individuals can visit www.ara-inc.us or contact an Asset Recovery Associates (ARA) professional in order to discuss a specific debt situation.

No individual or family plans on falling into debt. Most start their adult lives with ideas of consistent and gainful employment, financial arrangements for retirement, and the timely payment of any outstanding loans. Unfortunately, pay rates and employment can change, as can a wide variety of life events. With this in mind, there are a few basic steps a person can take in order to avoid falling into significant debt.

Credit card mismanagement is one of the more common ways an individual might find themselves in debt. Arguably the most basic step toward avoiding credit card debt, or any form of debt for that matter, is simply to never charge an amount that you cannot afford. Credit cards should be viewed merely as an item of convenience, rather than an endless series of small loans. If there will not be enough cash to pay for a product or service at the end of the month, the credit card should not be used as a stand-in.

A more specific method for avoiding debt involves categorizing expenditures. Disposable items such as takeout or groceries, for example, should never be charged to a credit card. Unpaid credit items quickly generate interest and individuals should never pay monthly interest for a dinner consumed several weeks earlier.

Indeed, the interest rate of each individual credit card should be carefully examined, particularly when it comes to cash advances. These advances generally carry an exceptionally high interest rate, in addition to transaction fees and the lack of a grace period on repayment. Even timely repayments on cash advances come with built in charges that must be paid at the end of the month.

Maintaining Compliance with DBA International Certification Program

DBA Image: dbainternational.org

DBA
Image: dbainternational.org

 

Headquartered in Lombard, Illinois, Asset Recovery Associates, Inc., assists in collecting consumer debt and managing accounts receivable for medium- to large-sized businesses clients, such as banks, credit card companies, and retailers. Asset Recovery Associates, Inc., maintains membership in nationally and internationally recognized debt collection organizations, including the Debt Buyers Association International (DBA International).

DBA International assists debt-collection agencies and other related financial services companies in gaining and staying abreast of industry knowledge, so that they may provide the greatest customer service possible and uphold high regulatory standards.

The organization offers a certification program to help ensure the requirements of operating within the receivables industry are known and followed. The certification provides companies with the base guidelines for maintaining compliance with state, federal, and municipal laws, as well as regulatory agency rules. The certification also educates companies on the abundance of audit information that must be collected and maintained. A certification to help with compliance best practices helps keep companies in good standing with the law and with their customers.