As of late, American consumers have been paying more attention to how much debt they are taking on. One of the most common types of debt that consumers in Texas have had problems with is credit card debt. Consumers have decreased this type of debt by more than $3 billion since July. However, consumers still owe significant amounts on credit cards. Ironically, some experts are suggesting that one of the best ways to decrease credit card debt is through the use of more credit cards.
Some consumers are having trouble paying off the amounts owed on their credit cards due to high interest rates. Credit card interest rates can run as high as 22 percent in some cases. With interest rates this high, consumers may find it challenging to pay down their debt even when making payments of two or three times the monthly amount due.
This is why some experts are suggesting consumers consider transferring their balances on high interest credit cards to cards with lower interest rates. Some of these credit cards even offer zero percent or low interest rates for a specified period of time. However, when making this decision one should consider any balance transfer fees involved, as well as how long the low interest rate will last. Sometimes it may be better to choose a card with a low fixed rate rather than one that has a temporary zero percent interest rate.
Despite attempting to tackle credit card debt, sometimes a consumer may find that he or she still cannot overcome his or her financial problems. There could be a variety of reasons for this, however if one does not deal with serious debt problems, things could become quickly worse. In some cases, it may be necessary to file for bankruptcy in order to obtain relief from overwhelming debt in Texas.
Source: ABC 13