Having and using a credit card is not inherently bad. Many Pennsylvania consumers use credit cards for added security when making purchases or to earn rewards points for making additional purchases. There are also downsides to using credit cards too, especially when it comes to overspending. For some consumers, ending up with too much credit card debt is easier than they may believe.
American consumers collectively owe $1 trillion on their credit cards. The Federal Reserve reported that in 2017 the average adult had $6,814 in credit card debt alone. While this alone is a significant sum to repay, interest rates can end up ballooning original debts to much larger sizes. Many people end up paying hundreds or even thousands of dollars in interest before fully paying off their balances.
Too much credit card debt can also negatively affect credit scores. Too much debt and a less than ideal credit score makes it more difficult and more expensive to secure other lines of credit for things like auto loans, mortgages and even personal loans. This is especially true for people who have outstanding balances that are close to the cap on their total lines of credit.
Some people like to act as if repaying debt is as simple as slashing expenses and sticking to a budget. In reality, life is far more complicated than this, and unexpected financial issues can show up at every turn. This means that while people in Pennsylvania might desperately want to repay their credit card debt, they may simply be unable to do so. Personal bankruptcy can sometimes be an effective option in these types of situations, and speaking with an experienced attorney may help clear up any lingering questions on the process.