Like many other American consumers, you may use your credit card to make purchases on a regular basis. And like others, you may use your credit card both as a way to pay for unexpected or emergency expenses as well as your daily needs. You may be able to manage your credit card debt effectively, paying off your balance each month and not accumulating interest, but that is not the case for others.
Studies show that a significant number of credit card holders do not manage their credit card debt well. In fact, many people carry credit debt over from month to month. This leads to accumulating interest, growing balances and stress over a debt burden a person may not be able to pay. If you find yourself in this situation, you are not alone.
A serious debt problem
Estimates suggest that at least half of those who have credit cards carry over debt on a monthly basis. Of those individuals, a significant portion carried over $1,000. With credit cards, interest can compound quickly, and before you know it, you may be dealing with a balance that you can never hope to pay off on your own.
In order to understand why credit card debt is a concern for so many and how it can negatively impact a person's financial health, it may help to understand the following:
- Almost 40 percent of those polled about their credit card debt claim that it has prevented them from moving forward with things like buying a car or a home.
- Almost 30 percent of people polled admit they have missed a payment because they forgot, they could not afford to pay or other reasons.
- Forty-one percent of those polled admit they are unaware of the interest rate for the credit cards they have.
This type of debt is more than just a stress point or inconvenience – it can become a major financial problem. Unpaid credit card debt can eventually lead to calls from creditors, lower credit scores and more issues.
Options for struggling consumers
If you are unable to manage your credit card debt, you may consider the benefit of filing for bankruptcy. This option may allow you to discharge your debt while enjoying protection from debt collectors. You can eventually emerge from this process to a better and stronger financial future.
Making the choice to file for bankruptcy is not easy. It may help you to seek a complete evaluation of your case in order to see if this the right course of action for you and your Texas family.