Credit card debt remains one of the biggest causes of financial distress. The National Foundation for Credit Counseling (NFCC) recently conducted an online poll to determine just how dependent consumers are on their credit cards. Michigan consumers may be interested in what the results revealed and how this impacts credit card debt.
When asked whether individuals would be able to manage their monthly living expenses without using a credit card, one in every five respondents said that it would be impossible. Almost 25 percent of participants in the poll said that they would be able to manage, but significant lifestyle changes would be required if they had to live on cash only. The NFCC stated that the inability to get by without credit cards should set off alarm bells, as total reliance on credit cards may lead to overwhelming debt.
In contrast, a large percentage of consumers are avoiding the convenience of credit cards all together. According to authorities, that is also not a wise decision, as credit scores are mostly based on a consumer’s credit card use and history. Consumers who are able to settle the full outstanding amount on their credit cards timely every month and avoid seeking advances of cash, along with those who avoid doing balance transfers, may find that they are in full control of their credit card debt.
However, Michigan consumers who find themselves applying for new credit, as soon as existing cards are close to the limit, may already feel overwhelmed by the situation. Those who want to explore the options available to allow them to walk away from their credit card debt may want to seek legal advice. One of the options available is personal bankruptcy that will protect consumers from demanding creditors. After obtaining the relevant information about Chapter 7 and Chapter 13 bankruptcy, proper guidance may set them on the road to financial stability.
Source: thefiscaltimes.com, “The Credit Card Crutch That Keeps You in Debt“, Marine Cole, Sept. 9, 2014