Advocating For Consumers In Bankruptcy Filings For More Than 25 Years

Keep a close eye on credit card debt

On Behalf of | Apr 3, 2020 | Bankruptcy

Many Americans have credit card debt. Most of these individuals are careful with how they use their available credit; however, some are finding that it only takes one problem to cause them default on those credit cards and wreak havoc on their credit report.

People who have higher incomes typically have more credit card debt, and this means that they have higher monthly payment. This can make it harder to catch up on payments if the person is laid off or has a dip in income for any reason, especially when it’s an unexpected event.

The average consumer has three credit cards, and they pay an average of 16.46% interest. All told, this country’s revolving debt is up to $1.04 trillion, which is a huge jump from the 2013 total of $857 billion. The issue here is that people aren’t paying off their credit cards each month. Instead, they allow the balances to carry over, which may lead to overspending.

In time of financial difficulty, trying to decide what bills to skip can be a challenge because most people want to pay what they owe. Sitting down to create a budget might be beneficial. If you see that you just can’t make ends meet, it is time to protect your home and life’s necessities.

One option that you have to address the financial shortfall is to file for bankruptcy. This isn’t an answer that everyone will utilize, but it is a responsible way to take control of your finances. For most consumers, filing either Chapter 7 or 13 will provide them with the relief they need to get back on track.

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