By: Darrell Castle
Daily Finance posted an article online today in which it posed two questions:
1. Is your credit card debt average?
2. What is average?
The article went on to state that getting a definitive answer can be a challenge as different sources have gathered different information. Listed were three different sources – MagnifyMoney.com, NerdWallet.com and CreditCards.com.
Based on their findings, if you have anywhere from $5,000 to $11,000 in credit card debt, you’re average.
My answer? It doesn’t matter!
You shouldn’t judge your credit card debt based on what the average US consumer’s credit card debt is. Instead, you should be basing your credit card debt on your means! Does the amount of money you bring in each month justify the amount of money you owe?
If it were up to me, I’d tell you to not have any credit card debt. However, I know the world runs on credit now and most people are more than likely to have some form of credit card debt.
The point? Curiosity on credit card debt statistics is fine, but you shouldn’t compare your credit card debt to others’, but rather compare it to what you make and what you spend. You should always spend wisely and save consistently. With high interest rates and fees, your credit card debt, which may be small, can quickly grow to a big number and completely CONSUME you.
You also never know when an unexpected incident, like a job loss or a medical emergency, will present itself. That makes it even more important to charge your cards wisely and save often so you can withstand those life challenges instead of allowing them to break you.
If you currently have more credit card debt than you can handle, you should consider filing for bankruptcy. The longer you wait to do something, the worse the problem will become.
By filing for bankruptcy, you can either discharge your debt through a Chapter 7 or lump all of your debt into a 3-5 year repayment plan through a Chapter 13. Then once the bankruptcy process is complete, you have a clean slate and a fresh start to rebuild your credit the right way.
We can help you rebuild your credit with our credit restoration program, “7 Steps to a 720.” This program is a $1,000 value, but it’s free for our clients because we pay for it. We’re the only firm in the area offering it.
If you have any questions or if you’re considering filing for bankruptcy, you can speak to one of our experienced bankruptcy attorneys, free of charge, by filling out our online contact form or by calling us at (901) 327-2100.