While the reasons are many, the result is often the same. Loss of income, medical bills or inattention to the family budget can skyrocket the family’s credit card debt. This excessive credit card debt has become a serious problem for many Florida families.
Recent reports indicate that Florida currently maintains fifth place when looking at which states carry the greatest debt burden. The average Florida resident carries a credit card balance in excess of $5,500. With a median state income of just over $28,000, this credit balance amount is concerning. If one were to pay 15 percent of his or her income towards this debt, it would take an estimated 18 months to pay it off. However, if one were to only make the minimum monthly payments, it would take over 12 years to pay off.
For many, credit card debt creeps up. Perhaps one member of the family has lost a job or for some reason been unable to work. Many times, the family will look to credit cards as a way to maintain their lifestyle until the financial picture changes. Unfortunately, the financial picture does not always change as quickly as one anticipates; furthermore, even after it does, the accumulated debt will need to be addressed.
One of the first ways to address the problem is to simply stop the credit card debt cycle. In this case, the Florida resident would put the credit card away and focus on paying it down. This approach is often easier said than done. Consultation with experienced legal counsel can aid the individual or family in deciding the best way to approach the credit card debt problem in order to resolve it.
Source: CNBC, “The 5 US states that struggle most with credit card debt“, Kathleen Elkins, Dec. 22, 2016