Many Americans have debt in some form, whether it is a mortgage, an automobile loan, a student loan or credit card debt. Although a great number of people view debt as unavoidable, it is generally understood that there are good types of debt and bad types of debt. Credit card debt, because of the expenses related to interest charges and fees and the potential for creditor harassment, is often classified as bad debt.
Credit cards can be a great financial tool for New York residents who need to make a large purchase or cover the expenses associated with an unexpected emergency. Unfortunately, however, credit card debt can quickly snowball, creating significant financial hardships for consumers. Many people struggling with high levels of credit card debt face creditor harassment, late fees and interest rates that can make paying off a balance seem impossible. In some cases, extreme levels of credit card debt can lead to filing for bankruptcy.
Because credit card debt is so common in the United States, many people fail to see the debt as a problem until it has snowballed. Credit is useful and invaluable in many situations, but sometimes life intervenes and circumstances change in ways that make repaying incurred debt difficult if not impossible. Examples of such circumstances include job loss or reduced hours, health emergencies, unexpected family additions, or the need to provide care for a loved one. For many people with high levels of credit card debt and limited income, the problems extend beyond financial stress to include delinquent payments (and the resulting late fees) and creditor harassment.
Credit card debt is familiar to most American consumers. Although many consumers are able to manage their debt levels, others fall may fall into trouble-often due to no fault of their own. Many New York consumers who carry credit card debt are able to effectively make payments and keep ahead of their credit card balances until an unexpected circumstance occurs, like a job loss or a serious illness. When consumers begin struggling with credit card debt and the accompanying creditor harassment, the FDCPA can be of assistance.
Even though the recession may be officially over, many people--especially New York residents--carefully watch financial indicators to assess the strength of the economy and whether the rebound will continue. Statistics relating to credit card debt are commonly studied because they can provide data on how well American households are faring financially and how they are spending--or not spending--their money.
The effects of carrying large amounts of credit card debt can reach far beyond the expenses of significant interest charges or negative consequences on a person's credit score. Financial strain can be incredibly taxing and stressful for individuals and families, especially when creditor harassment begins or intensifies.
Persisting financial struggles can be one of the most difficult things an individual experiences. Credit card debt is very common, with many people carrying high average balances on a monthly basis. While some people are able to manage their debts, making minimum payments or more each month, others start to fall behind due to unforeseen circumstances like job loss, serious medical conditions, etc.
Many people assume that only people with low incomes struggle with financial problems. However, the truth and reality is that anyone can find himself in financial trouble if something unexpected occurs or if he lives above his means. The availability of credit cards have increased the risk of ballooning debt that becomes unmanageable because it gives people access to money at nearly all times. Due to the ease of obtaining credit cards, many people use them to finance a range of things, including businesses, which can lead to some significant levels of credit card debt.