Consumer Credit Counseling: Your Path to a Better Financial Future
Credit card debt can quietly creep into your life. Credit cards can make it challenging to monitor your daily spending. When using cash for purchases, you physically part with the money from your wallet at the point of sale. Each time you visit an ATM or bank teller, you receive frequent reminders of your spending. However, with a credit card, small charges can accumulate throughout the month. Rows of small transactions turn into a shockingly high bill by the end of the month, and if not paid on time, additional charges and fees may be added.
Even for responsible credit card users who maintain their spending within a practical budget, unexpected events can occur. Unanticipated car or home repair expenses, medical bills, or family emergencies can transform your credit card from a convenient payment method into the only available option. While trying to regain financial stability, it’s easy to lose track of interest payments, minimum payment percentages, and APRs. Even after consolidating various credit lines into a single payment through debt consolidation, the burden of repayment still looms.
Overall, the national average credit card debt among cardholders with unpaid balances in December 2022 was $7,279. That includes debt from bank cards and retail credit cards.
Credit card debt has become an increasingly prevalent issue today, with millions of individuals facing the consequences of mounting balances and high-interest rates. This growing problem can have significant long-term impacts on one’s financial well-being and overall quality of life. Over the years, credit card balances have consistently exhibited an upward trajectory especially post 2014. The pandemic showed a slowdown but as life is kicking back to normal credit card debts are seemingly picking up again.