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Credit Card Debt Archives

Do teens and young adults get into debt too soon?

It may not surprise you, but there are more teens struggling with debt today than in the past. In fact, just between 1992 and the early 2000s, the number of teens who took on debt had risen by over 100 percent. Not all of this debt is credit debt; some may be related to college loans or car loans. The point is that it's more common to see that teens and adults between 18 and 24 have found themselves already in a pile of debt.

Know your options for handling holiday debts

Now that the holiday season is over, the credit card bills are rolling in. These bills might not be pretty. You might soon realize that you can't make the minimum payments and keep up with your normal living expenses. If you are in this position, right now is the time to think about how you will handle the situation. You can sit back and do nothing. You can find a second job and struggle to make the payments. You can seek relief from the debt that you suddenly find yourself in.

Debts and the holidays: Americans add close to $1,000

After the holidays, any extra spending you put on credit cards can come back to haunt you. In fact, the average American added $986 in debt during the holidays in 2014. In a survey performed with an national sample of 403 Americans, they reported that the average amount they added to their accounts was $986, and 44 percent of debt holders stated they were stressed about it. Maybe most shocking is that with a 15 percent interest rate and a minimum payment of $25, this relatively low amount can take over 10 years to pay off and include another $400 in interest.

Credit card debt might pile up and lead to bankruptcy

If you are swimming in credit card debt, you might feel like you don't have a way out. This is a difficult situation, especially if you simply can't cover your normal expenses and the minimum payments required on the credit cards. We know that you might have simply become overwhelmed because of circumstances that you can't control. You might have lost your job while you were trying to pay off Christmas expenses. This is a devastating turn of events, but the good news is that you might have an option. 

How can you reduce credit card debt after the holidays?

The holidays tend to be a time when people spend a lot of money, and that can accumulate significant credit card debt. While many can pay those debts back over time, doing so costs more when interest is at play. Sometimes, problems come up, like having hours cut at work or losing a job, which can make it hard to pay them down at all. Here are a few tips for reducing credit card debt, so you can get back on track financially.

Top reasons for major credit card debt

It's certainly possible to use credit cards without having any real debt at all. As long as you only spend as much as you earn -- or less -- every month, then you can pay it off at the end of the month. Most cards don't have any fees if you do this, so it's not that much different than using a debit card or the cash you have on hand. You're just running everything through the card first, perhaps because of the rewards points.

Spike in credit card debt veers near pre-recession levels

A consumer finance web site has reported that consumers in Arkansas and nationwide racked up an impressive $33.4 billion ticket in total credit card debt in the second quarter of 2016. The rapid pace of credit card debt accumulation puts the consumer population on a pace to achieve a record of $1 trillion of such debt by year's end. The situation is becoming reminiscent of the 2008 financial crisis that capped a kind of national frenzy of consumer spending and borrowing, rather than saving.

Increased credit card use may indicate new bankruptcy increase

The use of credit cards is increasing in Arkansas and nationwide, and more consumers are missing payments, according to reports issued by Synchrony Financial, the largest distributor of retail store credit cards. Economic experts view this as a sign of an oncoming recession. It may also bring an increase in bankruptcy filings in the near future.

Remedies are available to overcome mounting credit card debt

It is reported that consumers nationwide, including in Arkansas, carry increased levels of credit card debt. Researchers have been able to determine which age groups are the biggest spenders. However, the question that remains unanswered is on what consumers with high credit card debt are spending their money.

Too much debt may point to bankruptcy instead of payment plan

When the debt load of an individual or family residing in Arkansas or elsewhere reaches a certain point, it may be that no comprehensive payment plan with creditors can possibly succeed. The consumer's limited ability to repay in affordable monthly installments, based on available income and necessary living expenses, may doom the plan at the outset. If such a repayment plan were attempted, it would take decades to pay off the debt, and, in some cases, the amount owed may go up rather than down. That scenario is generally one that cries out for bankruptcy relief.