Cash seems to be quickly becoming obsolete as more and more consumers turn to plastic to pay for their purchases. While this may not be a big shift in spending when debit cards are used, the truth of the matter is that credit cards continue to be used at a significant rate. Many consumers enjoy putting off paying for their purchases, while at the same time earning rewards. Although this can be a benefit to using credit cards, the debt accumulated through this purchasing style can quickly get out of hand, thereby leaving an individual with insurmountable debt.
In fact, Americans have racked up more than $1 trillion in credit card debt, which is up significantly from the $854 billion in credit card debt that was held just five years ago. Although some individuals are able to pay off their credit card balances each month, 60 percent are unable to. This means that they can be hit with a significant amount of interest. This is no small thing, either, especially considering that the average American owes more than $6,000 in credit card debt.
Texas ranks seventh on a recently released list of the states with the most credit card debt. According to that report, the average credit card balance in Texas stood at $6,902 as of 2017. This is significant considering that the cost of living in Texas is below the national average. The average number of credit cards held by an individual stood at a little over three.
As sad as it is that many Texans find themselves saddled with debt, the good news is that they may be able to find debt relief. Chapter 7 bankruptcy is a very real option for those who are looking to shed debt and obtain a new lease on their financial lives. This bankruptcy process includes liquidating some, but not all, of one’s assets in exchange for certain debts being written off. There are many details involved with Chapter 7 bankruptcy, though, so if it sound like an option for you then you are encouraged to discuss the matter with a bankruptcy attorney.