John E. Pytte July 31, 2016

credit scoreThe Double Edged Sword of Credit Card Debt

Debt due to Credit card overuse is an epidemic throughout the United States. Reports from various sources such as the site state that more than 160 million American adults have at least one credit card, and many of them have at three or more. Statistics also indicate that the average American household owes about $15,000 in credit card debt. This complication affects people of all races and economic status. In other words, credit card debt does not discriminate.

How People Get Into Credit Card Debt

Credit card debt is a problem that sometimes occurs as early as one’s college years. College students are susceptible to getting into such debt partly because of their need to exert some level of independence. College kids often want to show the world that they can take care of themselves. Credit card companies sometimes target college kids knowing that they do not have the income necessary to repay their debts. Many students fall victim to credit card debt without a strong incentive to pay off the card balance every month. What seems like the gift of financial empowerment, turns out to be wallet-swallowing debt.

Financially struggling individuals sometimes get caught in credit card debt because they see the cards as “extra money.” They are overjoyed by the convenience of a plastic card that provides them with the short-term funds they need to pay for an unplanned-for expense like a car repair or medical bill. Unfortunately, many struggling individuals do not have enough margin built into their disposable income to pay their credit card debts, yet they receive multiple appeals and approvals from credit card marketers..

A well off, high-income individual can also get caught in the trap of credit card debt, too. This person may end up with too many cards because it’s just hard to say no. Such a person may use the credit cards to impress friends or members of the opposite gender, or to keep up appearances. In many instances, it proves true that expenses can outstrip income even for the most wealthy people. They eventually find out that the credit is not unlimited, and neither is his or her income.

The Curse of the Revolving Debt

Credit cards fall into the category of revolving debts. The credit limit works like a revolving door, meaning it keeps coming back around so the debtor can use it again. That can be good for one person’s credit score but dreadful for a person who is struggling. The struggling individual is tempted to use the card to make it through the week each week. The result is that the debt never gets paid off, and the debtor enters an endless cycle of making minimum payments but never actually reducing the principal.

What to Do About Credit Card Debt

Credit card debt can be an embarrassing and frustrating situation, but a consumer can find his or her way out of it. Several solutions are available for debt recovery, but the first step is ceasing to use credit of any kind. Next, the debtor should get a copy of his or her credit score. The credit score number gives a simple picture of creditworthiness, and the number will help the person determine what steps to take next. Georgia Debt Relief can help you improve your credit score Savannah GA by helping you with your credit card debt.

An extremely low credit score Savannah GA number indicates that bankruptcy may be the only way to get out of debt. Some other solutions are debt settlement, debt management plans and debt consolidation. Debt consolidation is usually difficult for a person who has a very low score. Debt management plans may work if the consumer is willing to let another party handle the payments to various creditors each month. A troubled debtor should contact a legal firm that specializes in consumer laws and credit rebuilding strategies, like Georgia Debt Relief. Our staff is very knowledgeable about all kinds of debt issues and how to solve them, and help you with your credit score Savannah GA.