There are many ways that individuals can find themselves saddled with debt. In many cases, though, Texans are forced to turn to credit cards to cover unexpected costs, whether they be car repairs, medical bills or home maintenance. While these cards provide quick access to a line of credit, individuals who use them can find themselves hurtling toward a seemingly inescapable debt spiral.
In fact, a recent survey found that nearly half of Americans carry a monthly credit card balance, meaning that they don’t pay off the debt in full in each month. Less than one-third of those surveyed said they expected to pay off their credit card debt within the next year. More than 70 percent of those surveyed said that they their average credit card balance is more than $1,000. The average national credit card balance is more than $5,000.
This trend is problematic for a number of reasons. Perhaps chief amongst them is the fact that interest rates on credit cards are at an all-time high, hovering near 18 percent. Another contributing factor, though, is the fact that approximately 28 percent of people rely on credit cards just to pay for life’s essentials, such as utilities and rent. As mentioned above, unexpected expenses can just compound the problem. Those who are unable to make significant payments toward their credit card debt can see their balances balloon. In these circumstances, it can take years or even decades to fully pay off a credit card balance.
The sad reality is that too many Texans either struggle to pay their credit card debt or are simply unable to pay it. Instead of struggling with financial insecurity for years or decades to come, these individuals should carefully consider seeking out debt relief options. Chapter 7 bankruptcy is a very real way to rid oneself of debt. This is why those who find themselves with overwhelming credit card debt should think about discussing this matter with an attorney who is experienced in this field.