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Credit card debt preventing many from saving money

For many Tennessee residents and others around the nation, it is difficult to save money for future needs. Those in the financial industry urge consumers to save for their retirements and for emergency needs as well. Unfortunately, those who have incurred a substantial amount of credit card debt are unable to put aside money for any reason.

According to a recent survey by a consumer financial services company, almost 25 percent of adults have less money in their savings accounts than they owe to credit card companies. While 17 percent of those surveyed don't have any balances on their credit cards, they still have no money saved. Experts strongly suggest rectifying this situation by making efforts to reduce debt and increase savings.

Certainly, when consumers have savings set aside, they are better able to handle unforeseen expenses that may arise. If not, many often turn to credit cards to pay for the unexpected costs. Data shows that the average credit card debt per family is just over $7,000. The situation for many families is bleak when the fact that almost 40 percent of them have no savings at all.

Creating a budget is an excellent first step in regaining control of one's financial situation. This forces someone to look at all aspects of the family's finances -- both income and expenses. There may be opportunities identified to make additional money that can be used to pay down debt. Also, examining expenses to see how possible cuts can be made is beneficial. While many experts recommend tackling high credit card balances first, as soon as the balances are paid, the money can be used to establish a savings account.

Credit card debt may feel overwhelming at times. To reduce or eliminate this unsecured debt, it would be helpful to contact a Tennessee bankruptcy attorney for guidance. A knowledgeable lawyer can work with clients to develop a plan that can help them get their financial situations under control.

Source: fool.com, "Nearly 25% of Americans Have More Credit Card Debt Than Savings", Maurie Backman, Feb. 2, 2018

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