Numerous Illinois residents depend on their credit cards to get by financially. Many of them carry balances that they struggle to pay off and they are not alone in that. It was recently reported that the average American household is drowning in credit card debt. How bad it is, exactly?
According to the report, the average household credit card debt amounts to just over $8,000. That may seem fairly manageable, but with compounding interest, those with these balances will end up paying twice that if they make minimum payments until their bills are paid off. According to the most recent data, American consumers have roughly $974.2 billion in credit card-related debt. This is an increase of about 3 percent compared to the previous year.
Many Americans are working toward paying down their credit card balances but many struggle to do so. In fact, in the first quarter of 2018, American consumers put $40 billion toward their credit card debt. Unfortunately, since then they have added about $38 billion back to their credit cards. When it all becomes too much and they just cannot get ahead financially, what can they do?
There are debt relief options open to Illinois residents. It may be possible to talk credit card providers into lower rates or forgiving a portion of one’s debt. Bankruptcy may also be an option that, depending on the type of bankruptcy pursued, could result in the creation of an affordable repayment plan or complete credit card debt discharge. Legal counsel can review one’s situation and help one pursue the debt relief option thought best for the situation.