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credit card debt Archives

Does credit card debt point to a future financial crisis?

With a strong economy and low levels of unemployment, consumer confidence is high. This leads to increased spending, which may leave some consumers with a large amount of credit card debt. Rising levels of credit card debt are especially concerning considering that most people in Tennessee received smaller tax refunds or no refunds at all, and wage levels continue to remain stagnant. 

The significant negative impact of credit card debt

When a person is unable to manage his or her debt, it can often result in various negative consequences, including calls from creditors, accumulating interest and even wage garnishment. Credit card debt is one of the most common types of consumer debt, and many people with credit cards have accumulated balances that are far beyond what they can hope to pay off on their own. Some Tennessee credit card holders are subjected to wage garnishment as a result of late credit card payments.

Credit card debt and 90-day delinquencies reach record levels

The popular perception in recent years has generally been that the credit card debt load of consumers was under control. The bankruptcy numbers were down, the recession ended, and the prior dramatic reports of a credit card crisis were at a standstill. Recent data from the Federal Reserve, however, reveals that U.S. credit card debt hit an all-time record high of $870 billion as of Dec. 2018, a trend reflected in Tennessee as well as most other states.

A HELOC may manage credit card debt but caution is advised

Many residents of Tennessee continue to confront debt management problems with respect to credit cards. One problem is that the interest rate and fees imposed on credit card debt is some of the highest debt that one can take on. Due to the expensive cost of that kind of credit, some people have transferred their credit card balances over to a home equity line of credit, or HELOC. This debt relief remedy can substantially lower the amount of interest that one pays on the borrowed funds.

Millennials may not always handle their credit card debt well

Most people in Tennessee have credit cards, and many people carry over at least some of their balance from month to month. However, there are some people who are not able to manage their credit card debt well, and they can quickly fall behind and come to a place where they are unable to make a dent in the amount they owe. According to statistics, millennials are prone to carry their credit card balances for a year or longer.

Credit card debt can quickly become overwhelming

Most people in Tennessee and around the country want to pay their bills, be responsible citizens and provide for their families. In a healthy economy, this should be an achievable goal. The reality is that even though the economy as a whole is healthy, wages have not kept up, and many people struggle to pay their monthly bills. If an un-anticipated crisis such as a layoff or health issue occurs, barely keeping up can rapidly become failing to keep up. Credit card debt can contribute significantly to the seriousness of the situation.

Issues with high levels of credit card debt can be overwhelming

There are many individuals in Tennessee and elsewhere who have experienced the struggle of dealing with overwhelming financial obligations. While one may encounter these issues under a variety of circumstances, studies indicate that credit card debt accounts for nearly 25 percent of the average person's financial woes. Those who struggle under the weight of debt may wish to implement a plan to take back control of their finances, but they might be uncertain where to begin.

Credit card debt: Tips for first-time cardholders

Many individuals in Tennessee and elsewhere may be aware of the inherent risks of applying for and using a credit card. However, first-time card users might lack the necessary knowledge or experience to know how to use these accounts wisely. Experts suggest there are certain mistakes new cardholders make that could increase the chances they will experience issues with credit card debt.

Credit card debt: What happens when accounts fall behind

There are many individuals in Tennessee and elsewhere who have experienced the challenges of falling behind on credit accounts. Credit card debt is one of the most prevalent causes of financial strain and similar issues can have a substantial impact on a person's financial future. While some may be aware of the risk of missing payments on credit card accounts, they may still be uncertain of what happens after an account falls behind.

Seeking ways to stay clear of credit card debt in Tennessee

Cutting down on debts is a goal for many consumers in Tennessee and across the nation. Although one of the best ways to prevent issues with credit card debt might be to avoid it entirely, in some cases, a person may feel it necessary to use similar accounts to fund financial endeavors. However, with high interest rates on many credit accounts, some may find it beneficial to seek advice on how protect their credit scores through responsible use of credit accounts.

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