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People are paying credit card debt on time

There are signs of an improving economy all over Tennessee. As the recession has ended, people are still enjoying low interest rates, higher home values and rising stock prices. This, according to experts, has allowed consumer confidence to grow. Life isn't perfect for many people, however. Many Tennessee residents are still facing high amounts of credit card and student loan debt.

With the improving economy, some people do have extra breathing room, and are faced with the option to pay down credit card debt or their student loan debt. Experts advise consumers in this situation to pay down credit card debt first. Credit card debt often has higher interest rates than student loans -- which tend to have fixed rates. Furthermore, there are not tax deductions available for the interest that is paid.

While situations like these can be a good sign, they can also leave some consumers feeling poorly about their credit card debt. As this report shows, for many people, credit card debt has become more manageable as the economy has improved. However, this isn't the case for everyone. Many people are still struggling with the debt that accumulated during the recession. Others may rely on credit cards to pay for their everyday needs, medical expenses or education expenses.

For those still struggling with late payments, high credit card balances, outrageous interest rates and creditor harassment, there are options available. People can seek debt relief from a variety of sources. For example, a bankruptcy can help some consumers overcome their credit card debt and achieve a fresh financial start. Additionally, a bankruptcy will stop creditor harassment and other collection methods. And, unlike other forms of debt relief, a bankruptcy will discharge most of a person's debt, not just credit card debt. However, a bankruptcy might not be right in every situation. In some situations, debt negotiation or consolidation might be a better option.

Source: LA Times, "Which to pay off first: credit cards or student loans?," Liz Weston, Sept. 21, 2014

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

Toll Free: 888-376-0282
Phone: 423-933-1606
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