Credit card debt: Awareness of interest rates could be key
Many individuals in Tennessee and elsewhere may feel that paying the minimum due on credit accounts is enough to stave off financial troubles. However, with the average interest rates coming in at just under 17 percent, a similar decision could leave a person paying down credit card debt for extended periods. Recent studies even suggest that many are unaware of how much they pay in interest and how their rates affect account balances.
During a recent study, less than 40 percent of those surveyed said they were aware of the interest rates on their credit cards. While these rates are subject to change at times, being completely unaware of the interest on accounts could prove devastating. Those who carry constant balances on similar accounts could end up paying a significant amount each year in interest alone.
Even if a person is able to meet the minimum payment due each month, this amount may do little to decrease the overall balance on credit accounts. On accounts with high interest rates, balances may continue to rise over time. A similar circumstances could lead to overwhelming monetary obligations that may leave a person in search of some much-needed financial relief.
Substantial amounts of credit card debt can place a substantial financial weight on a person. Those who wish to pursue relief from debts could choose to speak with a bankruptcy attorney for guidance on their available options. An attorney can help a client in Tennessee choose the correct path with which to pursue relief and subsequently assist him or her in navigating the process.