Credit card debt can quickly become overwhelming

Most people in Tennessee and around the country want to pay their bills, be responsible citizens and provide for their families. In a healthy economy, this should be an achievable goal. The reality is that even though the economy as a whole is healthy, wages have not kept up, and many people struggle to pay their monthly bills. If an un-anticipated crisis such as a layoff or health issue occurs, barely keeping up can rapidly become failing to keep up. Credit card debt can contribute significantly to the seriousness of the situation.

When a crisis happens that makes it difficult to pay down a credit card balance, that balance can quickly appear to be an insurmountable mountain of debt. With interest charges and late payment charges, the balance may continue to grow even without additional charges being added to the card. Failure to pay on the account could damage one’s credit rating, and, if the bill is not paid over several months, a law suit could result.

A payment is not late until 30 days past the date due, and chances are that the credit card company will report a 30-day-late payment to the credit agencies, and that can negatively impact one’s credit rating. If one gets into the 60, 90, 120 or later situation, the consequences can be severe. There are steps that can be taken to minimize the damage, and calling the credit card company should be the first step when a problem becomes evident. The companies are frequently willing to work out temporary arrangements. Reviewing the household budget to see where changes can be made is also a good step.

Credit cards are a necessary component of today’s society. Learning how to manage the debt that they can create is also important. If a person finds him or herself carrying more credit card debt than he or she can comfortably handle, an attorney in Tennessee may be able to evaluate the situation and assist the client in getting the debt load under control.