Maintaining a credit card can be a lot of hard work. A person has to monitor their spending, keep track of their bills, meet the minimum payment every month, and be timely with payments. However, some people may fall behind on their payments. This is called delinquency.
Some Tennessee consumers may enter the New Year with overwhelming debt. Many consumers get swept away by the multitude of exciting product offers over the holidays and overspend despite their good intentions not to do so. This may lead to consumers giving in to the aggressive marketing of payday loans. However, payday loans typically go hand-in-hand with excessive interest rates, and consumers end up with the dilemma of whether to first pay their credit card debt or the payday loans.
Tennessee consumers may agree that the time approaching the holidays is the time when their resistance to credit card spending is at its lowest. As if that is not enough pressure, store assistants use all their skills to pressure consumers into taking on store-issued credit cards. However, for many consumers, additional cards could mean extra stress related to credit card debt. A recent study showed that almost a third of shoppers were bullied by cashiers in an effort to convince them of the advantages of branded credit cards, and many of those consumers succumbed to the pressure and took on such cards.
The Urban Institute recently released a report that found 35 percent of Americans have debt that has gone to collections. That equates to nearly 77 million people across the country.
A bankruptcy will affect your credit score, but there are things that you can do to re-establish good credit.