Many consumers in Florida and around the nation use credit cards for household purchases. While some may routinely pay the full balance on the card each month, there are others who carry balances. In fact, the average credit card debt for a family in this country is around $5,700. This number almost triples to $16,000 for those families that carry balances each month. Financial experts stress the importance of getting credit card debt under control.
The first step in addressing the problem of credit card debt is to thoroughly understand the debt situation. Some financial advisors believe that if a client is unable to pay off credit card debt in six months, that amount of debt is too much. Making payments over such a long time keeps consumers from saving money or forces them to stay in jobs they may not like. Another critical action is establishing a budget that tracks all income and spending. It is helpful to stop using credit cards and establish a plan to pay them in full.
While debt consolidation companies may seem to be a viable option in reducing overall debt, experts suggest that consumers be cautious when soliciting their help. There can be significant financial implications for using the services, and the root cause of having high credit card debt is not addressed. It is also important not to fall back into the cycle of accumulating a high balance on credit cards once they are paid. Analysts suggest that someone keep one card with a low credit limit.
A large amount of credit card debt can be overwhelming for Florida consumers. An experienced bankruptcy attorney can help individuals get their finances back on track. A knowledgeable lawyer will work with clients to establish a plan best suited to their specific financial needs.
Source: CBS News, “4 ways to manage your credit card debt“, Susan Gulliford, Aug. 23, 2017