Many Tennessee residents struggle with credit card debt. In some cases, people have used credit cards to pay for medical expenses, every day expenses and other things when they cannot afford them. In this situation it is easy to fall behind on payments to creditors. With the high interest rates that accompany most credit card payments, a person's debt only gets worse in this situation, even if the person is not using the card.
It is not unusual for Tennessee residents to carry credit card debt. Credit cards can be used to purchase consumer goods, but they are often used by people to pay for necessary expenses, repairs, medical bills and other essentials in times of need. When people rely on credit cards to pay for necessary expenses, they can find it difficult to pay the company back. They may get stuck in a situation where interest is accruing faster than they can pay the full balance owed.
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.
As the economy seems to be slowly gaining traction, it may be easy to think that the debt load of people in Tennessee and around the country is getting lighter. This positive feeling can be buttressed by the fact that Americans paid off $32.5 billion in credit card debt last quarter. However, though that number may be impressive, that figure is less than the amount of credit card debt that was paid off by Americans at the end of the recession. In fact, Americans are expected to collectively accumulate $42 billion more in credit card debt by the end of this year compared to last year.
Many Americans can run into problems with credit cards. Revolving debt with high-interest rates can get anyone into trouble, no matter how financially responsible they may be. Fortunately, it was recently reported that balances on credit cards in the United States have declined for the fourth consecutive month, A fact that our Tennessee readers with credit card debt may not be aware of.
Filing for bankruptcy is far more common than many consumers realize. In fact, last year alone almost 1.2 million Americans filed for bankruptcy in the U.S. With a struggling economy, financial experts expect this figure to remain steady for the near future. While credit card debt and spending are often to blame for bankruptcy, the two most common reasons for filing are actually unexpected medical costs and lost jobs.