If you were to take a survey about credit card debt, it would be unlikely that you’d find any participant who could say they have never experienced it. Most people in New Mexico and throughout the country have had a balance unpaid on their credit cards at some time or another. You’ve probably noticed in your own financial history how personal economics fluctuate.
Even if you were standing on solid financial ground at one point, any number of unexpected issues may arise to throw things off balance. It’s often a lot easier to fall into serious financial debt than most people realize. The good news is, however, that there are also several financial tools available that may help people get their finances back on track when credit card debt gets out of hand.
The importance of a budget
Maybe you consider yourself an organized person when it comes to saving receipts and balancing your checkbook, but you don’t really take time to create a budget on paper. If so, you’re not the only one who prefers to take things as they come, financially speaking.
Managing credit card debt is often easier if you have a written budget and you do your best to stick to it. Think of it this way: How can you know if you’re overspending if you don’t really know how much you have to spend? Creating a budget enables you to see it all on paper and order your spending in ranks of importance.
If an emergency arises
Your car might break down. You or someone in your household could lose a job. Maybe you or a loved one have an adverse health issue requiring a lot of medical care. These and many other issues can cause serious financial distress if you don’t have money set aside to meet expenses.
Setting up an emergency fund is one way to help manage credit card debt. One of the most common causes of credit debt is using a credit card to pay medical bills. Even if you have insurance, a car accident or chronic health issue can prompt expenses that you’re not prepared to meet. Using a credit card to do so can lead to financial crisis.
Reward cards come in handy
You might consider owning a reward card and using it for purchases you know you’ll be able to pay off within the given payment cycle. Collecting rewards can lead to cash back or other financial benefits, like travel points, that can help you create cash flow or take trips without adding to your debt.
What if you’ve reached a point of no return?
If you are just servicing interest on credit cards and cannot see the light at the end of the tunnel to be debt free, bankruptcy is a valuable tool to discharge credit card debt. Some people hesitate to research bankruptcy programs because of the stigma attached. However, the reality is that bankruptcy is a legal, ethical option to receive debt relief and a fresh start.
You might wind up being among many others in New Mexico who have used bankruptcy to obtain immediate debt relief and lay the groundwork for a stronger financial future. A first logical step to take is to speak with someone who knows how it works and whether it might help you accomplish your financial goals. At Giddens & Gatton Law, P.C., we provide expertise with compassion to help you receive the relief you need and get your fresh start.