Credit card debt is a worry for North Carolina residents and people across the United States. Since making ends meet can be difficult, people are frequently using their credit cards to bridge gaps and make necessary purchases. In other instances, people spend beyond their means and find themselves in financial trouble. Research shows how prevalent this is.
A study by WalletHub examining credit card debt in California shows that on average, households owe more than $10,000 on their credit cards. In the second quarter of 2019, $4.4 billion was added to Californians’ credit card debt. This adds to the growing debt concerns across the nation with Americans in debt for more than $1 trillion in credit cards from the start of the year. During the second quarter of 2019, there was an overall debt increase of $35.6 billion.
It is also taking extra time for people to pay their credit card balances, raising what they owe in the long run. Increasingly, people owe more on their credit cards than they have in their savings accounts. People stated the debt came about because of crucial needs such as repairing their motor vehicles, medical expenses and home repairs. The study showed that 28 percent said daily expenses led to the debt; 27 percent said it was discretionary expenses.
One of the key strategies to getting out of credit card debt is clamping down on spending and paying back more than the minimum each month. Still, when the debt reaches overwhelming proportions, bankruptcy is one way to clear credit card debt, stop creditor harassment and improve personal finances. A law firm experienced in debt relief might be able to help.