Any kind of debt can impact a family’s lifestyle and plans for the future. However, it can be difficult for some Florida families to gauge whether they have out-of-control debt or a manageable amount of credit card debt. It can also be difficult to formulate a plan to manage that credit card debt once it is deemed too much to handle in a reasonable manner.
Having a high salary or secure employment may make people think their debt is normal or manageable. However, it is usually the type of debt that determines whether it is considered manageable or not. High credit card balances may be seen as bad debt, while student loans may not be bad debt to have at all.
One telltale sign of bad debt is if the kind that is accumulated by living above the means for a given salary. There may be the impulse to eliminate all unnecessary spending for a time to pay down the debt, along with a deprivation attitude during that period. But some financial experts warn that this type of approach isn’t realistic or a long-lasting solution because, once the debt is paid off, there may be a reverting to old habits. Keeping track of spending and realistically changing behaviors can be the first step toward managing credit card debt on a long-term basis.
Finding a plan that suits an individual’s current circumstances can be the best way to reign in credit card debt and other types of debt that may hold a family back from economic progress. It can be vital for Florida families to explore their options and choose a way out of debt that works best for their future. Some options, such as bankruptcy, can help families discharge unmanageable debt and move forward with a fresh start.
Source: foxbusiness.com, “Uh Oh: My Debt is Bigger Than My Salary”, , March 28, 2014