Do you have one or more credit cards that are currently maxed out? If so, you are definitely not alone in your struggle, as many people in Tennessee and beyond are facing or have already successfully overcome similar problems. Your financial situation may not be exactly the same as your neighbor's. However, you may relate to one or more of the common reasons people wind up with serious credit card debt.
Once you understand what led to your current financial crisis, you may be able to determine a best course of action for resolving it. While the details of an individual financial situation may vary, many people encounter similar challenges along the way when it comes to global, local or personal economics. By tapping into available resources, you may be able to get things back on track and lay the groundwork for a stronger financial future.
Issues that lead to credit card debt
The good news is that even serious financial crises are often temporary. Restoring financial stability may be possible through various means, such as Chapter 7 or Chapter 13 bankruptcy. The cause of your credit card debt and other financial problems may impact your choice of solutions. One or more of the following issues may have led to your current financial problem:
- If you suffered a reduction of income or became unemployed, you may have resorted to using credit cards to pay your bills and make ends meet. This is one of the most common reasons Tennessee residents rack up serious credit card debt.
- Not planning a budget is another common factor in many credit card debt situations.
- Perhaps you have fallen into poor spending habits, using credit as cash, then not paying off your monthly balance, which often prompts increased interest rates. This can quickly lead to major credit card debt.
- If you or someone in your household recently faced a medical emergency or some other unforeseen circumstance arose that was financially costly, you may have used your credit card to cover the expenses.
You can be hopeful that, by accessing various types of debt relief options, you may not only be able to pay back creditors but may also be able to rebuild your entire financial portfolio. There are several kinds of bankruptcy that others have used to wipe their slates clean and begin new financial journeys. Since you must qualify for application, it's always a good idea to discuss your options with someone who is well-versed in bankruptcy law to determine which solution best fits your immediate needs and long-term goals.