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Credit cards may lead to high personal debt

South Carolina residents may know that credit card debt is a problem for many individuals. Since the economic downturn occurred, some individuals lost their jobs and debts mounted. Using credit cards to pay that debt may have left them with a high balance. Overcoming that may be challenging for some debtors.

Credit cards generally allow individuals to pay the balance or make a minimum payment. As the balance is carried over, a credit card company adds interest to the balance, increasing the overall debt. In time, paying the minimum amount due can lead to a high balance.

One study found that the stress involved in carrying credit card debt is often worse than other life events. For instance, 19.5 percent of individuals queried in the study said it was more stressful than work. Almost 10 percent reported the pressure from debt associated with credit cards put more stress on them than health concerns. Fifty percent of respondents reported that they are able to pay their credit card bills in full each month. The problem led 30.2 percent of individuals to indicate that they would not get another credit card even if they might if their current debt was removed. Further, only 13.7 percent of the respondents in the study reported they had a viable plan for paying off this debt. Since the average American has $15,000 in household credit card debt, this lack of planning may lead to a difficult situation.

When a debtor is unable to pay bills, it may become a stressful and discouraging situation. Speaking to an attorney about ways to approach that may be beneficial. In some cases, the attorney may discuss Chapter 7 bankruptcy as an option for a chance to start over.

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The Huggins Law Firm, PA

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