As a general rule of good financial responsibility, a person should focus on minimizing their debt. This is especially true of high-interest balances, including credit card debt. There are times, however, when an Ohio resident may consider carrying a high balance near the maximum credit limit on their cards. It is important to realize that there is strategy and reasoning behind a decision to have a high balance.

Having credit card debt for the wrong reasons or without a good financial strategy to pay down the account may be detrimental, and paying down the balances should be a priority, according to a recent article. However, a serious emergency is an okay reason to run up some debt. It is important to take care of serious medical concerns and ensure that necessities, such as transportation to work, are provided for. In most circumstances, these debts are temporary and can be paid off.

In addition, consolidating debt can be another good reason to have a high balance on a card. When a new card is running a no-interest promotion, it can be worthwhile to transfer high-interest balances to the card to avoid paying that interest with the goal of paying the balance before the promotion ends. Carrying a high balance to get rewards is also a good strategy if the balance is paid off quickly. It is generally a good idea to pay off the amount immediately rather than wait for the close of the billing cycle.

Taking these precautions when developing credit card debt might help a person avoid unnecessary stresses on his or her credit score. However, in some cases, the accumulation of debt is unavoidable and leads to problems with creditors. When debt gets out of control, filing for bankruptcy may be a way to pursue debt relief. Those considering the action might consider discussing their circumstances with an attorney.

Source: USA Today, "The Only 4 Times You Should Max Out Your Credit Card", Lindsay Konsko, August 09, 2014

Source: USA Today, "The Only 4 Times You Should Max Out Your Credit Card", Lindsay Konsko, August 09, 2014