How much debt can one person handle?

Many Tennessee consumers have credit card debt. Even though most people have this type of debt, not everyone can manage it. In fact, some people find they are not able to really manage their balances, eventually leading to precarious financial situations. Credit card balances can quickly spiral out of control.

Every person is different, and the amount of debt a person can carry depends on the details of his or her income, financial obligations and other factors. When a consumer finds that his or her debts are more than he or she can manage, it may be beneficial to consider the legal ways a by which a person can confront credit card debt once and for all. One option includes filing for bankruptcy.

How much is too much for you?

As you may know, the amount of credit card debt that Americans owe is on the rise. In fact, this amount is up by $36 billion just in the last year. While having credit card is normal, it is smart to know the signs that could indicate your financial situation is quickly moving beyond your control. Things that could indicate you need help with your credit card include the following:

  • You are currently using credit cards to pay off the balances of other credit cards.
  • The amount of your credit card bills is significantly higher than your other bills.
  • You cannot afford to make more than your minimum payments on your credit card bills.
  • You have maxed out your credit cards and you are on the way to doing the same with other cards.
  • Your debt-to-income ratio is significantly higher on the debt side.

These are signs that your current amount of credit debt could be harmful. You may find yourself falling behind, getting calls from debt collectors and facing a lot of stress due to your debt. Fortunately, there may be a way out.

A better way to deal with debt

Instead of using cards to pay for credit card debt and remaining trapped in your current cycle of accumulating interest and minimum payments, it may be time to consider the benefits of filing for consumer bankruptcy.

Consumer bankruptcy, particularly Chapter 7, allows you to deal with unsecured debt. This includes credit card debt. Bankruptcy may not be your first choice, but it is an organized way to seek a better financial future for you and your Tennessee family. If you are unsure of what to do, a complete evaluation of your case may be helpful.