Credit cards certainly have their place in a person’s wallet, if used properly. Unfortunately, for many Michigan residents, they are used to cover expenses when their money runs out. Bills and other expenses have to get paid somehow, right?
According to a recently released article, roughly 56% of Americans do not have enough money to get them through from one paycheck to the next. Some people take out loans or turn to family for help in covering their expenses. Then there are those who turn to their credit cards. Research shows that about 28% of Americans turn to credit cards when they lack the funds they need between paydays.
Why is this a problem? If a credit card is not paid in full each month, the balance plus interest will carry over into the next month. This will continue month after month until one’s account balance is back to zero. When money is already tight, the added interest only makes it harder for people to pay back what they owe.
What is the real solution when frequently facing a lack of funds? Most people are told that budgeting and living within one’s means will fix the problem. The truth is, quite a few individuals who find themselves turning to credit cards are doing what they can to live on a budget, but they have just been hit with unexpected expenses that they cannot cover with their current income. When money is just not available and debt just keeps growing, that is when Michigan residents may be able to help themselves by looking into bankruptcy and other available debt relief options. Legal counsel can review one’s financial situation in detail and offer guidance and assistance in pursuing the relief option that best fits one’s needs.