Most credit card holders do not pay off their balances
It is not uncommon for Florida consumers to have a lot of credit card debt. In fact, the majority of revolving debt in the United States comes from credit cards. Around 38 percent of households in the U.S. have credit card debt with an average unpaid balance of $15,310. Credit card debt tends to grow with time, and 65 percent of card holders do not pay their balance in full each month.
Credit card holders who do not pay their balances in full at the end of every month wind up paying an average of about $2,600 in interest annually. When people take out several credit cards and maxes them all out, this activity can damage their credit score. Many financial advisers tell consumers that there is no good reason to even have a credit card unless it is being used simply to improve credit history.
People who want to get out of debt after maxing out all of their cards will have to either find a way to pay them off, continue to hold a balance for many years or file for bankruptcy. They may be able to contact their creditors to ask about lower interest rates or partial forgiveness, but these activities can damage their credit score and have tax consequences.
A lot of people who cannot afford to pay off their credit cards are reluctant to file for bankruptcy because they worry about their assets being liquidated. An lawyer can explain how Chapter 13 bankruptcy provides for a restructuring of debt pursuant to a court-approved repayment plan that lasts for a period of from three to five years, with the debtor keeping assets instead of forfeiting them.