Consumers are increasingly using buy now, pay later apps or using credit cards to cover the cost of rising food bills amid high inflation.
Local Attorney Dale Bohannon said while it might be a short-term aid, the danger comes when it’s time to pay it back.
“You don’t want to finance living expenses,” Bohannon said. “Because if you’re not able to pay off that credit card at the end of the month, you’re operating below break even and that’ll break the individual soon if you keep piling up debt.”
Bohannon said high-interest charges on late fees build up, penalties build, and eventually, the creditor could file a lawsuit. He said once that’s done and a judgment is obtained, it could result in a collection through property.
Bohannon said he deals with cases of this nature frequently through his work in consumer bankruptcy. He said everyone needs a credit card, but you have to get to position where you can pay it off every month on time.
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