When used wisely a credit card can save you on an emergency home or automobile repair, allow you to get a small interest free loan, and/or help build your credit. When used carelessly, credit cards can cost you big time and put your financial health in jeopardy. Not only this, but because the average credit card interest is in the 15% range, it can end up costing you a large amount of money.
The average credit card debt per U.S. household is $5,700 according to recent data from the U.S. Federal Reserve. If we use the average 15% interest on most credit cards that equates to over $400 dollars spent solely on interest every year. That’s just in a year; if you carry the debt for multiple years, we are now talking about over $1,000 dollars gone with nothing to show for it.
If you are currently carrying around a massive amount of credit card debt it’s time to do something about it. Commit to paying off the debt and make a plan that you can stick to. Remember, credit card companies benefit when consumers charge more than they can pay off immediately. If you have tried to break the cycle by cutting back on luxuries, transferring the balance to another card, or even selling your property to raise the money, then it may be time to consult a bankruptcy attorney in Dayton who specializes in debt relief.