Credit card spending has been rising since the start of the pandemic in 2019. Estimates suggest an increase of anywhere from 14 to over 33 percent in credit card spending.
If you are among the millions of people who increased credit card spending in the last couple of years, now can be an excellent time to think about how you might tackle debt sooner rather than later.
Preparing for increased interest rates
Credit card spending is not necessarily a bad thing. People can be confident using credit cards when they have the financial resources to repay them, but things can change.
For instance, the recently increased interest rates and inflation can certainly create strain for folks who were previously financially stable. In a matter of weeks, you could be spending more to pay off the same balance. And more increases can be just around the corner.
With this in mind, it can be wise to assess your financial standing now. Can you increase credit card payments? Can you focus on paying down the high-interest cards first? Is debt consolidation an option?
Too often, people get overwhelmed by credit card debt challenges, so they ultimately do not take any action. However, deciding to tackle it right away can be a step in the right direction.
Talking to your creditors
If you have an otherwise solid history with credit card companies, you may be able to talk to your creditors about options to make repayment easier. For instance, they may have hardship programs. Some may be willing to accept a settlement and forgive the outstanding balance that remains.
These exchanges can be highly stressful and intimidating, so working with an attorney can be wise.
Is bankruptcy an option?
In some cases, credit card debt is already unmanageable, or it is just one source of debt you are carrying. Under these circumstances, making some credit card payments may not make enough of an impact to alleviate your financial strain.
In this stressful situation, filing for bankruptcy can be an option for parties looking to discharge some or all of their debt.
Bankruptcy and other debt-relief solutions can alleviate financial strain. You can call 814-833-2222 to speak with the attorneys at the Quinn Law Firm and discuss the options that can work for you.