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Can financial literacy help me handle my credit card debt?

On Behalf of | Feb 19, 2020 | Credit Card Debt

Managing finances is not always easy, but most people do the best they can. The problem is that many consumers do not have a strong understanding of what is actually going on with their money. Without any financial literacy, adults in Pennsylvania are likely to end up falling deeper and deeper into credit card debt.

It is not just Pennsylvania residents who are struggling. One study shows that only 57% of people in American consumers can pass even the simplest financial literacy test. There are 13 countries with higher passing rates. Part of the problem is that a lot of adults were thrown into the world of handling their own finances without any kind of preparation at all.

Schools are trying to combat this problem by offering financial literacy classes to teenagers. Although this move has been applauded by some experts, one Nobel Prize winning economist says it is not as helpful as it seems. By the time teens actually get around to putting their financial literacy to use, most of them have forgotten almost everything.

Of course there are opportunities for Pennsylvania adults to improve their own financial literacy skills, but few people realize they even need help until they are struggling. By that point a person might already have more credit card debt than he or she knows what to do with. Although the idea of filing for bankruptcy might not sound exciting, doing so can actually help improve a person’s finances as well as his or her financial literacy.