As more consumers carry around plastic instead of cash, pulling out a credit card has become second nature. Although credit cards make our lives easier, charging certain items might be an early warning sign that you’re over-leveraged. In addition, paying for some items with plastic can cause you to overspend and land you in even more debt. Here are some purchases you should refrain from placing on your credit card.
1. Student loans
Not being able to pay your monthly student loan bill is a clear sign that you need to contact your lender — fast. There are several options available to borrowers who are having difficulty with payments. Among the available repayment options are graduated repayment and income-based repayment.
Depending on the circumstances, you might also want to look into deferment or forbearance. When you choose this option, you are allowed to temporarily stop payments. As soon as you think you might have difficulty meeting your student loan obligation, call your lender.