Many Tennessee residents use credit cards for purchases, whether for everyday needs like food or gas or for large items such as electronics. In fact, according to the Los Angeles Times, over 70 percent of consumers in the United States own at least one credit card and there are approximately 500 million total cards in circulation.
If you are worried about your finances, you are in the same boat as many other people in Tennessee. In fact, according to GOBankingRates, over the last five years, rates of stress related to finances are on the rise. Interestingly, according to a recent survey, the cause of people’s financial stress actually varies from state to state.
If you are part of the millennial generation, you may have seen how the Great Recession affected your family and friends. Therefore, you may now be basing some of your financial decisions on avoiding the negative consequences that you observed and the high rates of bankruptcy that resulted. If you are avoiding using credit cards as part of that, you are not alone. According to Money Magazine, 35 percent of people over the age of 30 do not use credit cards. However, for adults aged 18 to 29, the number is 63 percent.
After the Great Recession sent the economy into a tailspin, many consumers in Tennessee and across the country became much more cautious about using credit cards and taking on high-interest debt. However, it seems that the recent stronger economy now has many people heading in the opposite direction. According to NBC News, the number of new credit card accounts being opened is on the rise and is approaching the same numbers as before the Great Recession hit.
When used responsibly, credit cards can give people in Tennessee a financial boost. Credit cards help consumers establish a credit history that in turn helps those people qualify for bigger loans such as home mortgages and auto loans. However, if a person applies for a credit card but gets rejected, he or she may be left wondering why. There are a few common factors that often lead to a rejected application for credit.
The numbers are in and it looks like people in Tennessee and across the nation are doing better financially. If you feel more confident about your situation, you are not alone. Compared to 2009, most American families have seen improvement in a number of areas, according to Forbes.
Many states, including Tennessee, have laws in place called usury laws, which set forth maximum interest rates that can be charged on loans between private parties. However, certain lenders, such as banks and other loan companies, are exempt from these limitations on interest. Often times, banks sell debts to debt collection companies, which then pursue payment from the borrower.
Between monthly expenses and paying down debt, saving for a rainy day often takes a backseat for many Tennessee residents. However, having an emergency savings fund can be vitally important. If something were to happen that required immediate cash, people without emergency savings may resort to using their credit cards and incurring debt unnecessarily.
It appears as though an improving economy is leading to increased spending in Tennessee and across the country. In fact, if consumer spending continues at its current pace, credit card debt in the U.S. will hit the $1 trillion mark by the end of the year according to MarketWatch.
Being in a situation where money is tight is never fun. When you have limited means of securing money quickly, it may be tempting to lie about how much money you make in order to get approved for a credit card with a very high limit. However, this is not a good idea as it will likely only lead to more trouble down the road.