The heavy cost of credit card debt
Many consumers in Tennessee use their credit cards for daily purchases like groceries, as well as emergency expenses, such as medical bills. As a result, the average person has at least some credit card debt. It’s easy to swipe and go, but for those who carry a balance over each month, this type of spending can come with unexpected costs. After months of minimum payments and accumulating interest, it’s possible to end up with a lot of credit card debt and no way to pay it off.
According to statistics, the average cardholder owes almost $6,200 in credit card bills. This number is up from around $6,000 in 2018. This is a lot of money, but these numbers may not actually tell the whole story about the problem of credit card debt. These numbers don’t account for interest, which can average as high as 14% to 17%. Those with these types of balances will also have to pay a few hundred dollars more in interest alone.
Instead of adding to their emergency funds or saving for retirement, many cardholders are paying hundreds of dollars each year just in interest. It is easy to see how this can add to financial struggles and make it difficult to get ahead. Balance transfers and personal loans can sometimes help a Tennessee consumer address some credit card debt concerns, but there are other solutions available.
In some cases, personal bankruptcy can be a practical and effective way to deal with credit card debt once and for all. This process allows for the discharge of certain types of balances, allowing the applicant to emerge from the process with a better financial future in sight. An evaluation of the individual financial situation will reveal if this is the best option for someone struggling with credit card balances.