Florida residents and others around the country often see several benefits from the use of credit cards. The cards are convenient, safer than cash and help individuals establish a credit history. Despite these benefits, consumers often find themselves with an excessive amount of credit card debt. At that point, the conveniences of a card can create a potential burden. An online financial services company recently listed several reasons why people are incurring this debt.
Wedding expenses often get charged to credit cards. Unfortunately, since the average cost of a wedding in this country is over $35,000, this can cause credit card balances to rise quickly. Experts recommend carefully looking at budgeting appropriately for the big event and staying within those limits. Another pitfall for some is using the card for purchases to earn points in a rewards program. Still, others live outside their budgets to maintain an image.
Conversely, credit cards may be heavily used by those who have lost their jobs. Therefore, rather than extravagant purchases, debt can mount up for items such as gas, food or monthly utilities. If other unexpected expenses arise, people may use credit cards if there is no emergency savings fund. Finally, consumers often tend to have large card balances because there is so much credit available to them. Careful consideration should be given before accepting every company’s offer for additional credit or higher limits.
Credit card debt might begin to feel overwhelming for some Florida residents. A knowledgeable bankruptcy attorney can help individuals assess their situations and provide guidance on how to proceed. An experienced lawyer will partner with those who are seeking to develop a plan to get their finances back on track.
Source: mcall.com, “Why are Americans drowning in credit card debt?“, Valencia Higuera, Dec. 7, 2017