Every financial situation is unique, and while most people have and use credit cards, the way that debt is accumulated differs from person to person. In Tennessee and elsewhere, many assume that when a person is struggling to manage his or her credit card debt it is a result of an emergency or unexpected expense, but that is not always the case. Sometimes, these balances accumulate due to unchecked discretionary spending.
Many people use credit cards for various types of purchases, and they are able to pay off their balances each month. Those who cannot, however, are accumulating an average of 18% interest. This adds up quickly, and it's often surprising to learn how much is really owed and how much one can actually afford to pay each month. It also comes as a surprise to many to find out what expenses are really to blame for overwhelming credit card debt.
Credit cards are used on simple everyday purchases more than many people realize. For example, credit cards are used on things like dining, takeout food, travel, clothing, entertainment, gym memberships and more. These lifestyle expenses can quickly add up, eventually leaving a Tennessee consumer with more debt than he or she can manage, all as a result of things such as Starbucks purchases and ordering in dinner.
Credit card debt is common, but that does not mean that a person should not take it seriously. Some people may find that filing for bankruptcy is a beneficial and responsible way to deal with unmanageable debt once and for all. This is a serious decision, and careful consideration is prudent. A professional assessment of a person's financial situation can help gain an understanding of the options available.