Burdened by Overwhelming Credit Card Debt?
March 23, 2021
In 2021, the majority of Americans are carrying an overwhelming amount of credit card debt. Credit cards provide an “easy” way to pay for large purchases and for shopping online. Due to the COVID-19 pandemic that caused many businesses to close their doors and people to refrain from shopping in public, shopping online has never been easier – or more necessary.
For many years, most people did not put their day-to-day expenses on credit cards. They typically saved swiping their credit cards for emergency expenses and large purchases that fell outside their monthly budgets. However, today there are so many ways people are getting into trouble with credit. Credit card companies boast “point systems” that will help you earn free miles, free points, and free merchandise – so many people jump at the chance to earn their rewards. What typically happens, though, is that people feel the need to spend more so that they can earn more. They don’t always understand the correlation between their burdening debt and their spending habits.
According to recent reports, the average credit card balance is $6,200. With rising healthcare costs, groceries, and the continued economic burden of the COVID-19 pandemic, this high amount of debt is placing enormous burdens on consumers.
Steps to Get Out of Credit Card Debt
- Make and keep a budget. Tell your money where to go – don’t wonder where it went. Document every dollar you spend!
- Pay off small debts first. If you have multiple credit cards, put every dollar you can towards paying off the card with the smallest balance. Once that one is paid off, move on to the next. This will help you gain momentum in paying off debt.
- Negotiate your debt. Call your credit card company and explain to them your situation. Believe us, they have heard it all! And with so many people in financial strain from 2020, credit card companies are often more willing to help you reduce your interest or monthly payments.
If you are burdened with high credit card debt, bankruptcy may be an option for you. Contact George R. Belche, Attorney at Law, to learn how you can find a chance for a fresh start and resolve your financial problems.
George R. Belche, Attorney at Law
Lawrenceville, GA 30046