The nation’s economy has recently been moving in a positive direction. This is a good sign for many Tennessee residents. However, there are many consumers throughout the country that continue to be burdened with substantial credit card debt. Reports from a lending exchange company show that over 40 percent of those with debt from credit cards were only using them to keep up with monthly expenses. Experts suggested some issues that consumers may use to break this cycle of debt and get a better handle on their finances.
It is important to thoroughly understand one’s income and expenses. Having a long-term goal of eliminating credit card debt may require some short-term adjustments. Reducing the number of times of dining out, eliminating some features on a cable plan or cutting back a cellphone package are just a few options to try. In addition to cutting expenses, there may be ways to increase income. A part-time job or a short-term second job could provide extra funds to reduce debt quicker.
Emergency expenses are often cited as reasons for incurring credit card debt. Unexpected medical costs or car repairs account for many credit card purchases. Establishing an emergency savings accounts can reduce the need to use credit cards for these types of expenses. Financial advisors recommend having a fund for six months of living expenses should an emergency occur. While this size of a fund may take a while to accumulate, it is important to get started.
Reducing or eliminating credit card debt may seem like a daunting task. A Tennessee bankruptcy attorney can help consumers develop a plan that is uniquely tailored to their situations. A trusted lawyer will work with clients to get their finances back on track.
Source: fool.com, “Why the Average American Has Thousands in Credit Card Debt“, Wendy Connick, Jan. 22, 2018