Credit Card Debt Is A Widespread Problem, But Not An Insurmountable One

Credit cards used to be a status symbol, but now, when someone says that they haven’t used a credit card in months or years, it sounds like they are bragging.  Most American adults have at least some credit card debt, and monthly credit card balances are on the rise, nationwide, along with the prices of almost everything.  Pennsylvania is neither among the states with the highest average credit card debt per household (most of those are in the Northwest) nor the lowest average credit card debt (most of those are in the Deep South), but Pennsylvanians are feeling the pinch as much as anyone else is.  Travel and entertainment account for a large portion of credit card purchases; consumers’ reasoning is that, since COVID isn’t transmitted through airplane armrests but monkeypox is, we might as well travel now, before monkeypox becomes as widespread as COVID was two years ago.  The more disturbing news, though, is that 22 percent of borrowers who use credit cards to pay for necessities like groceries and utility bills do not have an income from work.  If you are struggling with credit card debt, contact a Philadelphia debt collection abuse lawyer.

Should You Just Keep Paying as Much as You Can?

Debt, and specifically credit card debt, has become such a normal part of life that a lot of people don’t even think of it as a problem unless they are struggling to keep up with monthly minimum payments.  Some people prioritize putting the largest amount of money possible toward the debts that are in the greatest danger of going to collections.  Paying the minimum payment toward your credit card (especially if that amount is less than $100) while focusing more energy on more urgent debts is a good enough strategy.  This is especially true if you have a steady income and are able to qualify for pay raises or supplement your income with gigs.  If you are able to pay more than the minimum, consider it a win.

When to Seek a More Comprehensive Solution

If you are struggling to make the minimum payments on your credit card, then scrounging for pennies each month only prolongs the agony.  Credit card debt is one of the easier kinds of debt to get rid of; unlike court judgments and overdue child support, you can easily discharge it in chapter 7 bankruptcy.  Depending on your income and assets, you might not even have to forfeit any property to do this.  If you do not want to file for bankruptcy, a debt consolidation loan can enable you to pay off your credit card debt and save money on interest in the long term.

Contact Louis S. Schwartz About Getting Out of Credit Card Debt

A Philadelphia consumer law attorney can help you if credit card debt is a main source of your financial worries; it is one of the easier financial problems to solve.  Contact Louis S. Schwartz at CONSUMERLAWPA.com to set up a free, confidential consultation.

Source:

axios.com/2022/08/06/inflation-recession-credit-card-debt