Credit cards are a common financial tool for most Connecticut residents and others around the country. Many consumers love the convenience of using a card to buy items or services, while others enjoy amassing points to gain rewards from purchases. However, rampant or uncontrolled use of credit cards can lead to problems. To avoid the need for debt relief, experts warn against the danger of having too much credit card debt and how to eliminate it.
As a nation, the total credit card debt has now exceeded $1 trillion. The Federal Reserve reports that the average household credit card debt is over $6,800. This type of debt is expensive to carry and can continue to grow if not addressed. If an original purchase price is not paid off in full each month, interest is added to the balance. If only minimum payments are made, it can take years to pay off the original purchase with high interest charges assessed.
A person’s credit score can be negatively affected as well. Late payments can definitely make the score go down, and the amount of available credit can also lower a score. It is important to have a plan to reduce the amount of credit card debt. Some may consider transferring some of the debt to a 0% introductory rate credit card. Others may look at ways to increase cash flow to generate more money to put toward the retirement of the debt by getting a second job.
If someone is struggling financially and in need of debt relief, contacting a Connecticut bankruptcy attorney is a positive step. An experienced lawyer can review the various options available and determine how to proceed. Working together, a plan for financial recovery can be achieved.