It is not unusual for individuals across the country, including in Tennessee, to have credit cards. Additionally, many of those individuals also have considerable credit card debt. The amount of debt accrued by consumers can lead to substantial difficulties, and individuals may wish to find ways to handle their debt in an effective manner.
It was recently reported that the amount of credit card debt amassed by U.S. consumers could potentially reach $1 trillion by the end of the year. This amount would be the highest such debt has ever been. As a result, it stands to reason that many individuals may be struggling to pay off their outstanding balances. Indeed, it was also reported that the average household has approximately $9,600 in credit card debt.
Additionally, high interest rates can also contribute to individuals' struggles. Though making minimum payments can help individuals avoid certain negative results from missing payments altogether, interest added to the outstanding balances could lead to thousands of dollars being added over the years. It will likely take many individuals several years to pay off their balances, if they are able to at all.
Rather than dealing with significant credit card debt for a decade or more in hopes of paying it off, bankruptcy may be able to help individuals handle their debt in much less time. Chapter 7 and Chapter 13 bankruptcy are common options for individuals hoping to address their debt issues. Information on these options may help Tennessee residents determine whether they would like to pursue such an avenue in hopes of discharging debt.
Source: wisebread.com, "6 Scary Facts About Credit Card Debt", Dan Rafter, Sept. 21, 2016