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What are “yo-yo debtors?”

On Behalf of | Oct 26, 2017 | Credit Card Debt

Believe it or not, the winter holiday season will be here before we know it. Many people plan ahead for this time of year, carefully managing their finances so that they can pay in full for gifts, parties and other expenses associated with the holiday season. However, for some people, including many people in Tennessee, the holiday season means one thing for their finances: increased credit card debt.

A recent news article noted the instances of so-called yo-yo debtors. People who fit into this type of category handle their debt and finances in a somewhat unique way. The report indicates that yo-yo debtors will go for periods of time when they are racking up debt on their credit cards, but then they will pay it all off. And then they will do it over and over again. These types of peaks and valleys with credit card debt can wreak havoc on a person’s finances.

This issue, according to the recent report, may be even more of a problem for younger debtors. The report indicates that many “millennials” don’t really have the best credit scores to begin with. The key to avoiding the yo-yo of credit card debt? Making a budget and sticking to it.

However, some Tennessee residents are facing such a mountain of credit card debt that they may think it will be impossible to pay it all off. For these individuals and families, it may be a good idea to weigh the pros and cons of filing for bankruptcy. Doing so could be a good way to find a permanent solution to overwhelming credit card debt.

Source:, “Yo-yo debtors can land in financial trouble,” Oct. 20, 2017