Credit Card Debt Help
Credit card debt affects people of all different lifestyles across the country who are unable to pay off unsecured consumer debt. When purchasing products and services using a credit card, you are required to make timely payments to the credit card company to pay off the purchase balance. Yet if you cannot make repayments or unable to make full payments, credit card interest and fees can add up. This problem leads to enormous credit card debts that can feel overwhelming.
There are many reasons why you may be unable to pay off your credit card debt. Yet there are also ways for you to deal with this debt, adopt wise money management strategies, and improve your credit score to become a responsible card holder. Once you feel confident on how to keep your debts and payments manageable, you can make smarter decisions when using your credit cards.
According to a recent CBS MoneyWatch article, the credit card debt problem looks a lot worse in Southern metropolitan cities. Specifically, CreditCards.com’s research found that in Texas alone, three cities placed in the top five. Things certainly are bigger in Texas it appears. But in all seriousness, the credit card debt problem is only getting worse. As I have written before and will likely write again, Americans of all generations are living on credit cards for varying reasons like lifestyle choices or necessity due to wage stagnation. For this study, however, demographics likely play a role in the numbers. The…Read More
According to a recent Forbes article, Millennials may not be doing so badly when it comes to handling their finances. That’s interesting news considering about one-third of Americans—77 million people—have a report of a debt in collections. Further, the average adult owes around $5,178. Despite a poor economic outlook since Millennials began entering the workforce (rising student loan debt, higher month-to-month credit card balances, historically lower wages, etc.) a more recent study found at least two surprising things. First, the average Millennial credit score increased by 4 points since 2016. Second, Millennials lowered their household debt by 8% during the…Read More
I don’t know about you, but as a student, I relished the day when my life was not judged by a number (i.e. grades). Then at some point in my early adulthood, it hit me that my life will forever be judged by a number: my credit score. The State of Credit Experian just released statistics this week on the State of Credit Scores in 2017. Credit scores overall were higher as was debt. The survey showed that the average credit score is 675; Americans have on average 3.1 credit cards; an average mortgage debt of $201,811; average non-mortgage debt of…Read More
American households are carrying a good bit of debt these days according to a recent NBC News article. From what I’m seeing, no matter how you categorize the debt or spin the numbers, it’s not welcoming news to begin the new year. Still, there is no better way to illustrate a point than by staring at the cold, hard numbers, so I will break down a few. The Numbers Don’t Lie $13 Trillion. The New York Federal Reserve found that total household debt (mortgages, student and car loans, etc.) reached slightly under that number in the third quarter—breaking the pre-2008…Read More
With the holiday shopping season upon us, I think we need to talk about credit cards and the evil that may lurk in the fine print. It is difficult to checkout at any store lately without the clerk trying to push me to open a credit card. I know their employer instructs them to make these offers and they most likely make a commission on how many accounts they open, but it has become pretty annoying. What’s the Issue? Many stores, especially around the holidays, will offer a steep discount on your purchase if you open a store credit card…Read More
The secret that credit card companies don’t want you to know is that you don’t have to pay them in full! Oh really!? Have you heard this advertisement? I was driving to the office the other day and listening to the radio. For the umpteenth time, I heard this exact commercial. It says that there is a little known secret that the credit card companies don’t want you to know and it is that you don’t have to pay your credit cards in full and it is not bankruptcy. I have been practicing exclusively in the area of consumer bankruptcy…Read More
You may be surprised to find out that Americans love using their credit cards. According to the Federal Reserve, for the first time since the financial crisis in 2008, the preferred method of payment among Americans is using a credit card rather than a debit card. In 2016, a US Payment Study conducted by TSYS reflected that out of the 1,000 consumers who have at least one debit card and one credit card, using a credit card for a payment method ranked highest as the choice for payment. Why? The primary reason appears to be that there is a huge…Read More
As my law partner pointed out recently, new data released by the Federal Reserve shows that credit cards debt has reached over 1 trillion in the United States. This is the highest it has been since before the recession in 2008. Creditcard.com states that the average consumer in America owes approximately $9,600 in credit card debt. A recent creditcard.com survey found that consumers are using credit cards for making smaller purchases in 2017. Out of 674 cardholders surveyed, 17% were using the credit cards to make purchases of $5 or less, which is an 11% increase from the 2016 survey. …Read More
With back to school right around the corner, many shoppers are hitting stores and using credit card to pay for their purchases. A recent report by the U.S. Federal Reserve showed total consumer borrowing rose by 18.4 billion in May which is the strongest gain since November’s $25.1 billion increase. While household income has increased in the past ten years, it has failed to keep up with the increased costs of living. To compensate, many Americans rely on the most expensive ways to borrow—credit cards. The credit card trap is an easy way to sink further and further into debt. If you…Read More
The average consumer knows that credit cards do have advantages, e.g., better response to fraud issues, ease of renting cars and hotel rooms, cash back and travel bonuses. The problem? Many consumers use them to spend more than they can afford. As simple as that notion may seem, CNN Money released an article suggesting that the problem of overspending could be avoided if consumers had a “good introduction” to credit card use. Specifically, the article suggests avoiding three rather large mistakes when selecting a card: (1) Avoid paying credit card late fees; (2) Avoid unnecessary interest; and (3) Get something…Read More