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What are the consequences of credit card debt?

Debt can be an anchor, a headache with profound consequences for Tennesseans. It can make life tough when things go smoothly; it can make life impossible when things go wrong. One of the most common forms of debt is credit card debt.

What is the cost of that credit card debt? According to a study, more than three quarters of Americans who owe credit card debt pay at least 15 percent interest on that debt. The average yearly cost of that was about $5,000. That is $5,000 going to service debt rather than to pay for useful things like food, clothing or shelter.

Not everyone pays $5,000 per year in credit card debts. But plenty pay thousands per year. That money takes a hefty bite out of a household's finances, money that could be better used -- especially when life throws an emergency at Tennesseans.

What should Tennesseans do about their credit card debt? They should do the obvious: stop digging the hole and start filling it in. Scale back your lifestyle, refinance the debt to a lower interest rate, add a side job or two. In short, make eliminating the debt a priority.

What if those steps are not enough? Sometimes the credit card debt is simply too large, the hole is too big to fill. In these cases, Tennesseans may want to consider filing for bankruptcy. Doing so could put an immediate halt to creditor harassment and be the first step towards a fresh start. Tennesseans who find themselves in this situation may want to consider discussing the pros and cons of filing for bankruptcy with an experienced bankruptcy attorney.

Source: Main Street, "Wake Up, America -- You're 'Delusional' Over Credit Card Debt," Brian O'Connell, April 30, 2015

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
Phone: 423-933-1606
Fax: 423-877-0363
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