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Credit card habits that can lead Tennesseans to debt

According to the latest figures, America is swimming in over $880 billion credit card debt. Although the causes of credit card debts are different for every individual, there are certain habits that can pave the way for financial ruin. Tennesseans should know that it is in their best interests to be aware, and avoid these habits to prevent a financial meltdown.

One of these habits is the parent trap. Tennesseans may have picked up their credit cards habits from their parents. However, it is not too late to stop the cycle by using cash or check to pay for items. Another is the balancing act. Constantly moving balances to different credit cards may seem like a clever way to survive debts, but it is a futile attempt since doing so does not reduce the balance. Pay balances outright.

Another bad habit is unnecessarily justifying purchases. Purchasing expensive gifts for loved ones and even to one's self seems justified, but if it is not a necessity, then there is no point in buying it in the first place.

Also, avoid impulse-buying. Take control of finances by making wise purchases. Not having a budget is also a sure way to accumulate debt. A budget creates a ceiling for expenses. It also shows people if the expenses are exceeding their income flow.

Although these habits can be prevented or even stopped midway, when the financial hole from credit card debt have become too deep for a Tennessean to climb up from, filing for bankruptcy may be necessary. Bankruptcy, whether Chapter 7 or Chapter 13, can help a Tennessee resident manage their debts so that it can all be paid off.

A bankruptcy filing can also prevent creditor harassment. It is best to consult with an experienced bankruptcy professional in order to understand the requirements and to prevent one's filing from being denied.

Source: The Huffington Post, "Credit Card Debt: 12 Common Debt Habits That Lead to Financial Ruin," Amandah Blackwell, Accessed on Dec. 4, 2014

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Kenneth C. Rannick, P.C.
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Chattanooga, TN 37411

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