Owning a significant amount of credit card debt can be a financial burden for Texas consumers of all income levels. Holiday spending might be one of the main reasons why you could be entering in the New Year with this type of burden weighing you down. If you would like to take care of your debt problems in 2020, there are various options available to you.
The end of a year can result in a lot of spending. From buying presents to traveling to hosting parties, it's easy to simply charge these things and not give it a second thought. At the end of the season, however, you're left with balances that you cannot afford. With accumulating interest and perhaps only making minimum payments, you may have a serious financial concern to address.
Do you have a debt problem?
There are many reasons why holiday debt can become a problem. Most people go into the holiday season with at least some debt. The average amount of credit card debt is around $6,600, and about 30% of these balances are carried over each month. After holiday spending, however, the amount you have to carry over may be more significant. Some tips on how to deal with your credit card debt include:
- Some people are able to effectively manage their balances by just increasing their payments each month. This may make a difference, but your payments may have to be fairly high just to bring your balance back down.
- Talk with credit card companies to see if it is possible to lower your interest rate. This can make it easier to get ahead with your overall balance.
- For some consumers, it makes sense to take out a personal loan that has a lower interest rate. This can allow you to pay off your credit card balance and save money on interest.
One option that many people are reluctant to try is consumer bankruptcy. This legal process allows a consumer to deal with his or her debt in a effective manner as it discharges certain unsecured balances. This includes credit card debt.
The right choice for you
If you are overwhelmed by your holiday credit card debt, bankruptcy could be the right way forward for you. While it is often a practical solution, it may not be the best choice in every situation. This is why it is important to seek the guidance and support of an experienced Texas bankruptcy attorney, starting with an assessment of the individual case.