Millions of people rely on credit cards to pay their bills, make expensive purchases and help them make ends meet. The problem lies in the fact that credit cards can bring more problems to those who are trying to free themselves of debt. In some cases, credit cards are great ways to build your credit, if you are careful to pay off your complete balance every month and to never charge more than you can afford. Trouble comes when people begin to charge excessive amounts that they are unable to pay at the end of each month. From there, a balance accumulates. Not only are you responsible for paying the balance of the card, but you also now have interest fees that stack up on top of the original amount.
After your bankruptcy is discharged and all or most of your debt has been cleared away, you are left with the task of rebuilding your credit score. There is no question that declaring bankruptcy can leave a significant mark on your credit report. However, there are a number of ways in which you can strengthen your score. Although you may think that you will never qualify for another credit card after bankruptcy, the opposite is true. You may begin to receive several credit card applications; however, it is important to use extreme caution when getting a credit card after bankruptcy.
Credit card debt is one of the largest forms of debt in Texas and across the United States. In addition to other forms of debt, such as medical expenses, student loans and mortgages, people can accrue massive amounts of credit card debt when creditors continue to supply people with high-limit credit cards. The problem exists in the fact that people are spending more than they have, and these cards often come with high interest rates and annual fees.
People who wish to purchase items or receive services regardless of whether or not their budget allows, may end up with hefty credit card bills. Credit card debt can build up rather quickly, as people purchase Christmas presents, electronics and go on vacations using plastic money. In some cases, these credit cards may have high interest rates and annual fees that add even more to the balance owed.
If you have excessive credit card debt in Texas, you are not alone. Millions of Americans have a substantial amount of debt, that in some cases, they are not able to repay. In some states, creditors are able to garnish up to 25 percent of debtors’ paychecks in an attempt to collect unpaid credit card funds, medical expenses and student loans. Texas, however, is one in four states that bans creditors from wage garnishment, according to NPR.org.
With the holidays quickly approaching, you may be rushing out to purchase gifts, organize parties, decorate the home and attend the many activities that make the season festive. Since affording this sudden financial burden can be difficult for working families and single parents in Texas and across the country, a number of Americans use their credit cards as a way to purchase their holiday items. Sadly, this is how debt accrues, and you may find it hard to pay off the credit card debt that accumulates as a result of these extravagant purchases. Here are some things that you may want to keep in mind when using your credit card this season.
There is no question that bankruptcy can have a negative impact on debtors’ credit scores. Once a bankruptcy is discharged, however, people are encouraged to begin rebuilding their credit scores. At The Law Office of Douglas J. Powell, PC, we know that one of the most common ways people can enhance their credit report is to obtain a credit card. However, there are some important things people should keep in mind when rebuilding their credit.
Determining the average amount of credit card debt per American seems like an easy task at first. Simply find the total number of Americans and total debt, do some quick math and come up with the answer. It isn't quite that easy, though. The amount of credit card debt, and the impact that this debt has upon families, can vary depending upon a person's situation.
Are you a millennial? Or are you closer to retirement? You place in life naturally can suggest what sort of debt situation you are living with.