RICHMOND, Va. (WWBT) - Normally every financial expert around would tell you to pay off your credit card debt. Don’t build it up
But this one of those times rules is meant to be broken. It’s an emergency.
Kim Palmer, a personal finance expert with the financial website NerdWallet, says all the normal rules about personal finance and credit cards go out the window.
“Now if you need to turn to your credit cards to buy essentials and you run up your credit card balance more than normal and you can’t pay the full balance off that’s not something to stress about too much right now. Later on, when you have income coming in again you can rebuild your credit you can pay off that debt,” Palmer said.
She says this is about survival. Another rule you can break?
Normally she would say always maintain spending 30% below your credit limit.
This is to protect your credit score, but it shouldn’t be a worry right now. Do what you have to buy essentials.
She would also usually tell you to max out your rewards and get as much out of them as possible.
But this is actually a time to cash in those reward points and turn them into money. Those rewards may help you buy groceries.
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