Too Much Credit Card Debt

According to Experian, the average credit card debt per borrower is $4,858. That’s not a small amount. The average interest rate on credit cards is around 15 percent, which means that the average credit card debt can cost you almost $1,000 in interest payments alone. If you’re carrying a balance on your credit cards and you can’t pay the full balance each month, then you’re probably going to have to pay a lot of interest. Here are a few questions to ask yourself to determine whether your credit card debt is working for you or against you.

What happens if I can’t pay my credit card?

If you don’t have enough money in your bank account or have no credit card limits, you can’t pay your credit card bill. If you don’t pay your credit card bill, you’ll have to pay late fees. You may also find that the bank can take you to court and sue you. If that happens, you’ll have to pay court costs and the bank’s attorney fees. If you lose the case, you’ll have to pay a judgment against you.

How can I resolve credit card debt?

If you’re having trouble making the minimum payments on your credit card, don’t ignore it. You can end up paying a lot more in interest. Your best bet might be to talk to the credit card company about making a payment arrangement. If you are already under collections from the credit card company or you are not able to make your future payments, you should contact an Elk Grove bankruptcy lawyer. An experienced lawyer can review all of your options for resolving your debt.