Many people in Tennessee use credit cards for everything from daily purchases to emergency needs, such as medical bills. While many are able to manage their balances and make more than minimum payments each month, others may find they are not able to do this. Ultimately, credit card debt can lead to serious financial problems for many.
When a person considers who has the most credit card debt, it may be may assumed that it’s individuals with a lower net worth. Surprisingly, consumers who have a net worth of $100,000 or more are more likely to carry credit card debt than those who have a negative net worth. Of these high net worth individuals with this type of debt, around 39% owe at least $5,000. Other statistics indicate that people earning $40,000 or less have the least amount of credit card debt.
There are various reasons why higher income people are more likely to have credit card debt. To understand this more, it may help to remember that a significant amount of a person’s wealth is tied up in a family home. This means that even though they have a higher net worth, it doesn’t necessarily mean they have the money in hand to pay off credit card debt or even make more that the minimum payment each month.
No matter how much a person earns or what his or her net worth may be, credit card debt can be damaging. It can lead to significant financial problems, especially if the Tennessee consumer cannot make more than the minimum payment each month. When this type of debt becomes overwhelming, it may be helpful to look at the benefits of consumer bankruptcy.