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Credit card debt affects many consumers across the country

When cash is out of reach, people in Tennessee use their credit cards to make purchases, acquire various services, pay rent and medical expenses. Every transaction using a credit card reflects on a person's credit score, which is the basis for the approval of a car loan and mortgage. It is important for consumers to maintain a healthy credit score; however, there are unexpected events like unemployment and serious health conditions that can affect a consumer's ability to pay the accrued debts, which can then result in financial challenges.

According to a recent report, credit card debt affect many consumers in the country-more than even student loan debt. Often, consumers have no idea how to properly use their credit cards. In some cases, reward points and other perks are too tempting for consumers to resist. These factors can result in overspending, and over time, the debts may accumulate.

Consumers are advised to use their credit cards intelligently. It is important to learn how to keep up with monthly payments and find ways to prevent overspending. There are various groups that help consumers choose the right type of card for their lifestyle and their income. Some of these groups also help consumers gain rewards, save money and avoid accumulating huge credit card debt.

If credit card debt becomes insurmountable, a consumer who is having a hard time paying debts can turn to bankruptcy. Bankruptcy is not always a bad option. In fact, it is an economic tool that was solely created for one purpose-to help honest debtors settle their debts and move on with their lives.

Source: Chicago Tribune, "Startups examining debt," Lori Kozlowski, Oct. 16, 2013

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