With America’s culture of consumerism, it should come as no surprise to find that Americans are heavily loaded with debt from credit cards. The average household in America that possesses at least one credit card has an average of over $10,000 in debt from credit cards.
CNN Money has a list of top things Americans need to know about handling their finances. First, they acknowledge that some debt can actually be good—such as borrowing money to pay for college or a home, but that you should be cautious not to borrow more money than you can pay back. They also advise shopping around to find the best interest rates. However, there is bad debt, such as using a credit card to purchase things like vacations that can’t be paid off in full within a few months. Using a credit card for expensive items that can’t be paid off timely is a fast way to find yourself in serious debt. They recommend putting cash aside each month to save for a big ticket item before charging your credit card, so you can pay the full amount when it is due and avoid paying high interest charges.
The article also urges Americans to think about what it is they’re purchasing. They suggest making a list of your typical monthly spending habits and then cut out the items you don’t really need. Save the money you would have spent or use it to try to reduce your debt faster.
When paying off your debts, first pay off the highest- interest rated debts, which CNN Money says is the solution to efficiently getting out of debt. Pay the balances of credit cards or loans that charge the highest interest, while you pay the minimum balance due on other debts. Once the high interest debts are paid off, pay off the next highest, and so forth. Soon you will find your debts greatly reduced.
Managing your money wisely can help you avoid filing for bankruptcy in New Jersey. However, in some cases, it may be in your best interest to file for New Jersey bankruptcy. Everyone’s situation is different, and it may be a good decision to speak with a New Jersey bankruptcy lawyer to find out your legal rights and options. The attorneys from the Law Offices of Robert Manchel have worked with many individuals, regarding their decision as to whether bankruptcy is the best solution. We can help guide you through the bankruptcy process and answer any questions you may have. If you are considering filing for bankruptcy in New Jersey, please contact our office to speak with one of our skilled and knowledgeable bankruptcy attorneys today. Call us at 866-503-5655.
Check our blog later this week for part II on how you can handle your money more wisely and potentially avoid filing for bankruptcy in New Jersey.
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