Probably no. Last month we would have said “NO”, but after the latest event, the rule of “Never Say Never” must be applied, hence the “Probably” clause.
However all the indicators point to the Federal Government wanting to acquire most of the bad debt on the books of the Financial Institutions including Credit Cards, Student Loans, and Auto Loans.
Which will mean that – if the plan goes through – you will owe money to the Federal Government.
In the meanwhile, between now and the time when the bailout will be approved, executed and implemented, there will be some turmoil in all the markets: stock market, credit market, banking, international markets etc. . .
We have always advocated that ideally you should carry two credit cards, one for every day purchases, paying off its balance in full each and every month, and another one for emergencies.
If you carry a balance on your credit card, then you should not use this card at all, make regular monthly payments as high as you can so that you can eventually pay it off; hence – in this case – you’ll carry three cards.
During the times of turmoil, that “emergency” credit card, the one that has an untapped credit line might come handy. If you have a business, you might want to get additional credit in the form of a business credit card, not to use foolishly, but to have the credit “just in case”. Like Donald Trump says: credit is something you get when you don’t need it.
Related articles:
- Student, car debt quietly added to bailout plan, The Washington Times
- How Many Credit Cards? And How to Reduce Credit Card Debt
- How to Pay Down Your High Interest Debt Without Feeling The Pinch
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Photo Credits: shadowmancer76 (cc)
