Credit card debt is an issue that plagues many Massachusetts consumers. Many are still feeling the sting of their holiday spending. Others may be struggling with unemployment or other financial challenges. Whatever the situation, credit card debt can be overwhelming and even embarrassing to some people. Getting out of debt may seem impossible, but by taking baby steps, it can happen. The trick is to have patience, since it won't happen overnight.
Readers of this Massachusetts bankruptcy blog may have spent the last few weeks preparing their 2015 resolutions. Each year people traditionally make plans to improve their health, wealth and happiness as the previous year ends and the new one begins. By now some may have fallen off of the resolution wagon and reverted back to using credit cards and other deferred payment options that enable their old spending ways. For people struggling to make ends meet and crippled by medical, home or credit card debt, our law firm understands that this can be a devastating occurrence.
Residents in Massachusetts will often make several shopping trips during the holidays. In order to get all the gifts for loved ones, some might be tempted to spend more money then they intend. This could lead to using credit cards and racking up more debt than they can handle. While some balance on a credit card in manageable, if this debt gets out of hand, consumers might encounter major financial problems.
One of the difficult parts of having credit card debt is that interest rates can be extremely high. Many companies provide unclear statements that rack up debt for individuals if they only pay the minimum payments on their debt. Credit card debt for Massachusetts residents can rack up quickly and spiral out of control.
Credit is an important tool in this nation's economy. Unfortunately, here in Massachusetts, many people may find themselves in poor credit situations. Debt by itself can be a tool, but it can also be a tomb for those feeling surrounded by it. Borrowing entails a certain level of responsibility, but many banks and lenders charge very high interest rates that can make some feel overwhelmed by credit card debt.
The holiday season is upon us and many Massachusetts residents may feel the only way to survive is to use their credit. There are several strategies you can use you to minimize debt and other tools for those who feel mired in credit card debt. The holidays can be a stressful time for those who rack up credit card debt or are struggling with other large financial burdens.
Consumers here in Massachusetts remain cautious about the sluggish economy. This is evidenced, say experts, by a continued decline in credit card use. American Credit card debt dropped in July for the second month in a row, showing consumers are hesitant to charge goods and services to their credit cards. Economists are concerned this may lead to weak consumer spending, but many banks are trying to offer new incentives to get people to use their cards more often.
One financial expert recently offered his opinion on how Massachusetts residents and those in other parts of the country can avoid being overwhelmed by credit card debt. The expert notes that while legislation like the CARD Act may help protect consumers from the financial challenges that result from mounting credit card bills, both Massachusetts consumers and others can on a personal level be proactive in avoiding some costly mistakes that often lead to more debt and less financial security:
According to a recent study, people across the U.S., including Massachusetts, who are under 30 are considerably less likely to carry any credit card debt than they were just eight years ago, prior to the Great Recession. Currently, 16 percent of all people 18 to 29 do not own a credit card; while this trend holds true for other age groups as well, it is not as marked. The average debt that this age group is carrying in credit cards is $2,087, down almost $1,000 from 2008.