While the national average for credit card debt might currently be over $16,000, that average may be manageable for some families and woefully overwhelming for others. Some Florida families may be completely unaware of how to tell when their level of credit card debt constitutes too much debt and has become unmanageable. Other families may reach that conclusion but not realize what options they may have for controlling that credit card debt.
There are key warning signs that credit card debt has reached an uncomfortable level. One sign is that more than 70 percent of one’s available credit has been used. Another sign of troubling debt is if credit cards are the used for common or minor purchases. If it is the only way to pay for gas or groceries, or the like, the financial reality may not be good.
Other signs that the debt is too much to handle can relate not so much to how cards are used but what a family does about the bills once they roll in. If it is a struggle to make payments by the due date, and late fees are a common issue, the hole of credit card debt will only get deeper. If someone uses other cards to pay the minimum balance, this is a form of borrowing that does nothing to alleviate overall credit card debt.
Knowing what to do about credit card debt can be the real struggle once the realization that it is a problem kicks in. Bankruptcy is a means of credit card debt management that some Florida families have found to be the most economical and wise choice. If a family qualifies for Chapter 7 bankruptcy, the overwhelming credit card debt can be discharged and help that family obtain financial stability to deal with other debts.
Source: fool.com, “7 Signs Your Credit Card Debt Is Out of Control — and 5 Ways to Fix It“, Matthew Frankel, Oct. 31, 2015