Many people in New York are able to make their monthly credit card payments, even as they carry thousands of dollars in balances on the cards. Maybe they think that they will be in a better financial position to make a full effort to repay the debt later on down the line, perhaps after getting a salary increase or finding a better paying job. In the meantime, they continue to use credit cards for purchases and make every effort to make the minimum payments each month.
There are many different indicators that economists keep track of to measure the so-called "health" of the national economy. Credit card debt is one such indicator. And, according to a recent report, the overall amount of credit card debt in America has topped $1 trillion for the first time in almost 10 years. But, is this a good thing or a bad thing?
Debt accumulated on credit cards is one of the most common reasons for Americans to file for bankruptcy. Now, according to a recent report, accumulated credit card debt in America has risen to a level that almost meets one of the highest points in years.
One way to measure the health of an individual or household's financial health is to look at the ratio of debt to savings. This is especially true with credit card debt, as the high-interest rates often mean the debt continues to grow even while some payments are being made. Savings, on the other hand, points to a certain capacity to weather financial problems, like unexpected medical expenses or other costs, which have not been planned for. Unfortunately, it seems that Americans are increasingly likely to have more high-interest debt than savings to cover such debt.
Sometimes, a person in Long Island has no choice but to put a purchase on a credit card. For some, it may be an unexpected job loss or illness that leads them to use a credit card to pay for food and clothing. Other times, it could be an expensive car repair or home repair that they simply cannot afford. No matter what the reason, according to one source, people across the United States are incurring increasing amounts of credit card debt.
Credit cards may have gotten many people in Long Island through a tough financial time, when an unexpected expense arose that they otherwise could not pay for. It may have been a medical bill, a car repair, a new water heater or any other number of expenses. Unfortunately, these expenses can add up, leading to unmanageable credit card debt.
Long Island residents facing substantial credit card debt may wish that someday it could just be wiped away altogether. And, should they face a credit card "charge off" they may think their problems are over. However, a credit card charge off could have numerous repercussions on a person's credit.
Some residents of Long Island may find that using a credit card is very tempting. After all, not only do credit cards allow individuals to purchase goods that they may not be able to afford outright, but they often come with rewards, such as airline miles, that credit card holders can accumulate the more often they use their credit cards. However, paying with a credit card can leave some people with a credit card bill that they simply cannot manage.
Although some Long Island residents may understand that filing for bankruptcy can negatively affect their credit score, what they may not know is that it is possible for their credit to bounce back after the bankruptcy process is complete.
When people fall behind on credit card debt, credit card companies can be quite aggressive in trying to collect that money. In some cases, they may turn the collection over to a collection agency. Collection agencies have a reputation for being aggressive in trying to collect past due credit card debt. Often, they can use harassing and intimidating tactics in order to try and get residents in New York to cooperate and pay money.