If you’re in credit card debt, you’re in good company. Americans, as a whole, hold more than $1 trillion worth of credit card debt. The average American with credit card debt holds nearly $10,000 in credit card balances each month. Last year, those who made only the minimum payments each month ended up facing more than $1,000 in interest fees, on average. These interest expenses are expected to rise as the economy continues to improve and the Federal Reserve hikes interest rates.
The increase in interest costs is worrisome for multiple reasons. First, wages are not keeping up, meaning that more and more Americans are finding themselves facing increased debt with no way to pay it off. Second, other household expenses are also rising, including food costs and housing. Those struggling to make ends meet thus turn to credit cards to help them get through the tough times.
Some financial experts suggest that those facing high credit card debt look for zero-interest balance transfer cards. These credit cards will allow you to shift your credit card debt from a high-interest card to a new card. Then, many of these cards provide holders with a period of zero-interest. This can allow an individual to get caught up on the debt without drowning in interest and fees.
Although taking these steps may be quite helpful, it may not be enough for some debtors. Those struggling with overwhelming debt may have other debt relief options available to them, though. Personal bankruptcy, for example, whether Chapter 7 or Chapter 13, may allow an individual to escape their burdensome financial situation and obtain a fresh financial start. To learn more, these individuals can speak with a Texas attorney skilled at handling these types of debt matters.
Source: New York Post, “Americans are swamped in $1 trillion of credit card debt,” Catherine Curan, April 16, 2017