As most Tennesseans are aware, credit card debt can accumulate in a short period of time, but can take years to pay off. While the spending may have been inevitable, the price one might pay for large amounts of debt can be costly. What are the main causes of debt in America, and how do consumers address this financial blow?
Pocket Sense points out in an article on credit card debt that not all situations arise as a result of irresponsible spending. Instead, many grapple with debt for a number of complex reasons, including loss of income and emergencies. Unemployment is one of the main causes of credit card debt, since turning to credit card use can be inevitable during this difficult chapter. Of course, emergencies never occur at the right time, and credit cards often come to the rescue. A misunderstanding of one’s credit can also invite issues down the road, especially for those who do not pay bills on time.
Some of these seemingly minor issues, including minor bill payment slip-ups, can present problems in the future if unaddressed. Bankrate emphasizes that a striking number of Americans — roughly 75 to 80 percent — struggle with debt in some form. First, it is always a wise choice to get acquainted with one’s financial options. As Bankrate explains, personal loans are just one way consumers can consolidate debt, as they often come with lowered monthly payments, an improved credit score and other benefits. A balance transfer credit card is another solution Bankrate suggests to readers; this plan allows debtors to move debt from one credit card to a new one offering better interest rates. And although declaring bankruptcy can come with its own set of challenges, Bankrate also supplies this option for those with a crucial need for debt management.