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We practice CONSUMER BANKRUPTCY law exclusively. 

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One of the top Bankruptcy Filers

in the Orlando Area

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  4.  » Credit card debt is an emotional issue for many

Florida residents and others throughout the country often get into debt for a variety of reasons. A recent survey conducted by a personal finance website asked questions regarding credit card debt. The survey revealed that emotions play a big part in how consumers view debt.

Many believe that consumers in this country incur credit card debt by overspending on unnecessary purchases while others suggest that people go into debt to help make ends meet. Roughly half of those surveyed say that their spending habits are influenced by emotion. Some may overspend because of stress, while others report that sadness is the cause. The survey also reported that excitement may be a factor in overspending for some. Whatever the emotion, advisors say that it is important to limit emotional spending.

The majority of survey respondents believed that there were a few acceptable reasons to go into debt. Some acceptable reasons mentioned in the survey were medical expenses, emergency purchases and other necessities if a person was unemployed.  Though most respondents agreed there were some good reasons to incur debt, even more said they would be embarrassed if they had credit card debt. Whatever feelings one may have about his or her debt, the experts say it’s important to pay it off.

Advisors recommend to first stop using the credit cards and incurring interest. It is also important to know exactly how much is owed on each card and understand the interest rates. Consumers can save more in interest payments by focusing first on paying the balances with the higher interest rates. If possible, increase income and decrease expense to provide extra money in a budget. Any extra cash paid toward credit card balances helps individuals move closer to being debt free.

Florida residents seeking to eliminate credit card debt often seek the advice of legal counsel. The situation may seem overwhelming, but an experienced attorney is a great help in understanding all the options available for consumers. Developing a plan to reduce credit card debt is a positive step toward gaining financial freedom.

Source: nerdwallet.com, “Survey: About Half of Americans Emotionally Overspend“, Erin El Issa, Jan. 31, 2017