Having serious debt may seem like a singular situation, but there are numerous people across the country, including those in Tennessee, dealing with thousands of dollars in debt. Credit card debt is among the most common type and is one that makes up a substantial amount of overall debt. When individuals are stuck in the vicious cycle of making monthly payments with no end in sight, they may wonder where to turn.
It was recently reported that the average amount of credit card debt for an individual in the United States is $3,600. However, because this number is calculated by including individuals who have no debt, it is likely that individuals with outstanding credit card balances are facing a higher amount. One study indicated that approximately $16,000 is closer to the amount that households with debt are facing.
If these individuals are making only minimum payments and adding on interest, reports also indicated that it would take almost 14 years to pay off that debt. Additionally, the end result would have consumers paying over $40,000 due to added interest and other fees. Individuals with lower income levels were also reported as being among those with the highest debt.
When parties are struggling with serious credit card debt, the idea of it taking over a decade to pay off along with added fees can seem daunting. Luckily, individuals may be able to take advantage of debt relief options that could allow qualifying parties to discharge debt in approximately half that time. Exploring bankruptcy as a debt management option could help interested Tennessee residents get back on the right financial track.
Source: USA Today, "The average American's credit card debt may shock you", Matthew Frankel, Oct. 12, 2016