Far from being a handy resource in an emergency, credit cards are more frequently becoming the go-to source of payment. This means that Michigan consumers who charge routine purchases when they are financially sound are likely not putting money aside for when hard times come. As credit card debt increases, consumers have less disposable income and soon find themselves in a revolving door of debt.
Financial experts across the country are concerned about the spike in credit card debt over the past 10 years. Americans now carry an average of $6,200 per credit card, and the typical household has at least four credit cards. Analysts have been examining the reasons why so many are deeply in debt to credit card companies, and the results of their research are surprising.
The most common expense for which today’s consumers are using credit is groceries. However, other everyday expenses that used to come from cash reserves are now paid for with credit. This can have a devastating effect as consumers find it harder to make their minimum payments and get out from under the oppressive interest rates of most credit cards.
Making a budget, seeking cards with lower interest and using proven methods for paying down credit card debt can all offer some relief. However, for those whose financial situation is at a crisis state, even these may not be the solution. Many in Michigan find that by speaking with a bankruptcy attorney, they can learn about their options for debt relief and obtain an advocate who can assist them in the most beneficial course of action.