The Tennessee economy, like most other states across the country, has recently shown signs of a rising financial crisis due to inflation and other issues. Many people struggle to make ends meet, especially those who foot the bill for gas prices to travel to and from work or have children to provide for at home. It is not uncommon for people to encounter substantial credit card debt when they get into a habit of swiping a card, rather than paying cash for purchases.
In many situations, it is not the credit card balance itself that is causing a financial problem, but it’s the high interest rates. If a person is sending a minimum monthly payment on time, but it is almost all going toward interest, it can be very difficult to pay off the entire balance. When interest rates lead to exorbitant credit debt, it might be time to consider the available options for debt relief.
Consider putting a credit card in the freezer to curb spending
One financial counselor advises clients to resist the temptation to shop on credit by placing the actual credit card in a freezer. Because it takes several hours for a card to thaw so that it is usable, the idea is that the urge to shop might subside by then, especially if the card owner engages in a productive activity while the card is thawing. For many people, however, credit card debt has exceeded a point where merely adjusting spending habits can do any good.
It might be time to consider filing for bankruptcy
Bankruptcy traditionally carried a stigma, although many people have learned what a valuable financial resource it can be when debt has gotten out of hand. Since there are several types of bankruptcy, it is important to determine which program best fits the needs of a particular set of circumstances, such as the need to resolve credit card debt. It is helpful to seek guidance from someone who not only can recommend debt relief options but can also provide support regarding legal issues that may arise in conjunction with filing for bankruptcy.