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Are you drowning in credit card debt?

On Behalf of | Aug 2, 2019 | Chapter 13 Bankruptcy |

Like many Ohio residents, you may find that sometimes your expenses surpass your income. If this happens once in a while it may not be a big deal, but when it happens often, it can become destructive. Unfortunately, some people in this situation use their credit cards as a way to buy the things they need without fully considering the long-term consequences of this spending habit. 

The New York Times recently reported that there has been an increase in the late payment of credit card bills, or bills that are being paid past their due dates. Two age groups significantly factor into this statistic: those people under the age of 30, and those in their 60s. The major credit bureau Experian said the average credit card balance as of May 2019 was $6,553, a slight increase from a year ago. 

One issue with carrying a credit card balance is that interest continues to accrue. This makes the total debt to be paid off much greater than if the bill was paid in full each month. Money used to make payments on the interest could be put to better use in an investment account. 

If you are having trouble paying your credit card bills, you should contact the card company to request a lower interest rate on your card or even a lower monthly payment for a specified period of time. In the event that you still have too much debt to make your payments, filing for bankruptcy may be a solution to have your debts reorganized, thus giving you some financial relief. This information is provided solely for educational purposes and should not be interpreted as legal advice. 


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