Many consumers in Florida and around the country like to charge their purchases. Whether for convenience or necessity, households in the nation now carry an average credit card debt of around $16,000. The Federal Reserve reports that as a country, there is a debt over $1 trillion. Financial advisors recommend getting control of the debt before there is serious damage to someone’s finances
While many routinely use credit cards, few understand the potential dangers. When a balance is paid in full each month, no interest or penalties are assessed; however, if a person carries a balance, interest charges are assessed, plus interest is accrued on that amount. The amount owed keeps increasing. The continually-growing balance can also have an adverse effect on a person’s credit score. This has far-reaching consequences, such as inability to get loan approvals or favorable rates on loans.
Experts suggest developing a plan to get out of debt. The first step is to eliminate the credit cards. It is also helpful to target the card that is the most expensive to maintain and work on paying off the full balance. Some consumers may elect to get a low or no interest rate card and move all their others balances to it. Others may negotiate a lower rate on an existing card with their lender.
Another option to getting out of debt include cutting unnecessary expenses. Some may choose to get a second job to increase their income in order to have more money to pay toward card balances. There are many things to do to, an individual must decide where to start to make improvements.
With such a variety of methods to reduce credit card debt, some consumers may feel overwhelmed with the process. A Florida bankruptcy attorney can provide valuable guidance to someone who wishes to make some changes in their financial lifestyle. An experienced lawyer understands the options and can work with clients to develop a plan that is best suited for their needs to make positive improvements.
Source: fool.com, “Credit Card Debt Has Reached an All-Time High. Here’s How to Get Yours Under Control“, Maurie Backman, Sept. 27, 2017