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Determining whether to use credit or not use credit is a big question for residents in Kansas and across the nation. It is one that financial experts often disagree on. While some experts believe that credit cards should be avoided at all costs, others believe that learning to use credit wisely is a good way to maintain good fiscal health. There are pros and cons to both approaches.

According to famed radio talk show host, Dave Ramsey, in a recent report, he advocates paying off all debts and remaining debt free. Critics say that having no credit is not advisable because it creates a zero credit score. This could make renting an apartment or buying a home difficult. To his critics, Ramsey advocates using a manual underwriting service for mortgage loans. In addition, he suggests documenting income for 12 to 24 months and showing proof of a good payment history for regular monthly expenses.

On the other hand, many financial experts believe that learning to manage credit is the key to financial success. Even if an individual pays off all their debts, it is recommended that he or she keep one or two credit cards open. These cards should be used two or three times a month and the balance paid off at the end of each month. In addition, credit can be a good emergency fallback plan.

For anyone who has had to utilize credit for a medical emergency or to stay a float in between jobs, paying off those balances can be difficult. When individuals become overwhelmed by credit card debt, it may be a good time to explore bankruptcy. A Chapter 7 bankruptcy may be the right tool for debt elimination.

Filing for bankruptcy is not an easy decision or process. Before going through wit these steps, all options for debt relief should be explored. Furthermore, becoming knowledgeable about the process and how it could affect them currently and in the future is important.

Source:, “Experts agree debt is a double-edged sword,” Tim Grant, July 7, 2014