At the onset of the recession, many people found credit card debt to be overwhelming and the source of many of their financial woes. As the recession waned, people learned more about how to effectively use credit cards and avoid unmanageable credit card debt. However, some in Florida and beyond found credit card debt to still be an issue while others are avoiding credit cards, which can be detrimental to their overall credit also.
A recent study revealed that roughly 20 percent of people could not maintain their monthly living expenses without the use of a credit card. Having to go without a credit card would essentially force them to live differently. It was also revealed that the average person has five to six credit cards in their possession and a level of unsecured debt that was around half of their annual income.
On the opposite end of the spectrum, those who make up the millennial generation have been avoiding credit cards altogether. While in theory avoidance of credit cards may help those consumers avoid debt, there is a downside to having no credit cards. That particular generation is now at risk of having insufficient credit scores for larger purchases, such as a house someday. An equal balance that is recommended entails having credit cards but paying off the balance each month and avoiding cash advances.
Credit card debt can be extremely stressful to deal with for anyone of any generation. When credit card debt becomes unmanageable, there are several steps Florida residents may seek to ease the burden and be in a better position to manage all finances. Bankruptcy and credit counseling can help those who are struggling and help those in debt get the fresh financial start they need.
Source: thefiscaltimes.com, “The Credit Card Crutch That Keeps You in Debt“, Marine Cole, Sept. 9, 2014