Debt can affect virtually every area of a Pennsylvania consumer’s life. Depending on the type of balances and how much is owed, consumer debt can quickly wipe out balances and spiral out of control. Credit card balances are a common type of consumer debt, and it is not unusual to see a cardholder struggle to keep up after just a few missed or minimum payments.
The average amount of credit card debt per household increased in 2019. With consumers often having more than one card at once, it can be difficult to keep up with payments and know how much one owes overall. One step in regaining control over the situation is to make a list of all credit cards and write down the amount owed on each. A debt repayment plan can be a beneficial second step, starting by focusing on paying the card with the lowest balance or highest interest rate first and going from there.
A debt reduction plan should also include ways to save money to put toward credit card balances. Even a small amount of extra money toward the payment each month can save money on interest and bring the balance down to zero faster. In some cases, however, a debt reduction plan is not enough to truly make a dent in these types of balances.
In cases where credit card balances and other financial problems are truly insurmountable, it may be prudent to consider the benefits of bankruptcy. Chapter 7 is a process especially practical for those who have large amounts of unsecured debt. This protection provides a Pennsylvania consumer options and a way to reach a better financial future.