For many individuals in Tennessee and elsewhere, credit cards may seem like an essential part of life, especially for those living a paycheck-to-paycheck lifestyle. However, with constant increases to interests rates, using similar accounts to fund purchases may come with inherent risks. Whether a card is used for everyday needs, or to cover the costs of medical care, carrying a high balance on a credit account could lead to extensive struggles with credit card debt.
Recent reports suggest that with an economy that is thriving, interest rates of credit card accounts are continually on the rise. According to these reports, the average interest rate on similar accounts recently hit an all-time high, coming in at just under 17 percent. These rates were increased by nearly 0.56 percent in the past six months alone, and the changes to interest rates could reportedly rise two more times by the end of the year.
A growing economy and a drop in unemployment rates may have many feeling secure and thinking they need not worry about rising interest rates. However, with the average balance on credit accounts sitting at around $6,300, a person could wind up paying hundreds, if not thousands in interest alone, while the balance on an account may see little change. Even if one can afford to make the minimum payment due, carrying a high balance could leave a person one sudden and unexpected expense away from a financial disaster.
Significant amounts of credit card debt can disrupt one’s finances severely and similar concerns could leave a person facing a potential monetary crisis. Those who wish to pursue relief from debts could benefit from speaking with a bankruptcy attorney for advice on all their available options. An attorney in Tennessee can assist a client in forming a strategy to reduce or eliminate debts and work toward a healthier financial future.