How to overcome yo-yo debt
Those who pay off their credit cards just to max them out again are referred to as yo-yo debtors. While anyone in Florida can be guilty of this habit, it may be more common among younger people who may not necessarily understand how credit cards work. In some cases, this may be a result of spending money without thinking about the impact.
This has played a role in 43 percent of millennials having sub-prime credit. Individuals may be able to get a handle on their debt by making a monthly budget, paying more than the minimum payment amount and understanding their credit limits. Working with a credit counselor may help an individual of any age learn more about credit and how to use it responsibly. By getting a handle on her credit, one woman was able to raise her credit score 200 points.
Creating and living by good monetary habits may make it easier to achieve financial security. Earning and keeping a high credit score may make it easier for someone to rent an apartment, secure low interest rates on loans and get better rates on insurance policies. Learning how to create a budget and abide by its guidelines may help a person control his or her spending, which may reduce the need to use credit cards.
Those who are struggling to keep up with their credit card payments or other debts may wish to look into filing for bankruptcy. Individuals who file for Chapter 13 bankruptcy may be able to keep property while making payments over a period of three or five years. Typically, creditors cannot contact debtors or follow through with other debt collection efforts while a case is ongoing. This may provide time to renegotiate the terms of a secured loan.