The last several years included economic recession and stagnation that has been extremely hard for millions of Americans, including many of our Escondido readers. Most of the time when an individual or family is dealing with significant financial hardship, all options are usually on the table. During the years of economic turmoil, the first option may have been to turn to funds held in savings accounts. After those funds were depleted, the next option may have been to turn to credit cards.
Many of our Escondido readers probably started 2014 by making a resolution. This is a popular tradition in America, and most people experience varying degrees of success and failure in keeping these resolutions throughout the year. For some people, their resolution may have been to pay off their credit card debts in 2014. If that is the goal, a recent article provided some tips.
Now that Christmas has come and gone, most people are starting to re-gear toward the new year and getting back to the regular routine. For some Escondido residents, this simply means continuing the same old financial practices. However, the new year could leave others looking for a fresh start when it comes to credit debt.
For many Escondido residents, the onset of the holiday season means good times at get-togethers with family members and friends, shopping for the perfects gifts for loved ones and sometimes even enjoying a little bit cooler weather. But, as most people know, this is also a time of year when many Americans put their credit in jeopardy.
Many of our Escondido readers may feel lucky just to have a job in today's economy, which remains as stagnant as ever. The unemployment rate is too high and there are building concerns about American employees becoming a "part-time workforce." Nonetheless, millions of Americans do their best to attempt to stash funds for retirement, whether it is through an employer-based 401(k) or an individual retirement account, also known as IRAs. But if an Escondido resident is trying to save for retirement but also dealing with mounting credit debt, isn't that a problem?
People born in different generations usually have different approaches to the problems they encounter, and credit debt is no exception. For instance, a recent article noted that some types of loans, like car loans lasting more than just a few years and home equity loans, were less common 60 years ago than they are today. As a result, the percentage of a household's income that needed to be devoted to debt back then was far lower than it is today. Nowadays, however, even after the financial crisis of recent years, getting a loan is much easier. And it appears that many people have been taking advantage of that fact.
Many Escondido residents have one goal in mind when they think about their financial situation: get out of debt. But, oftentimes, that may be easier said than done. With that in mind, a recent article noted a few different strategies on how to get out of debt, specifically credit card debt.
After a Chapter 7 bankruptcy, many people face the prospect of rebuilding their credit. Many financial experts would probably tell our Escondido that this is a difficult task that will take years to accomplish. However, once someone has that fresh start that a discharge of debt through bankruptcy offers, they will usually be more receptive to advice on how to manage their finances and, eventually, how to manage credit cards.
Most of our Escondido readers, like everyone else, can probably not even fathom an amount of money like $850 billion. But, according to those entities that monitor the nation's credit, that is the amount of credit card debt owed by American citizens as of the end of 2012 - and apparently that is a good thing.
Some of our Escondido readers may remember the times when credit card companies would send out representatives to college campuses throughout the country, attempting to get college students to sign up for credit cards by tempting them with free t-shirts and other merchandise. Laws have changed and addressed that situation, but it could serve as an indication as to how certain people view credit cards. For some, credit cards are hardly ever used for fear of the impact that use would have on a credit score. For others, using credit cards is necessary just to make ends meet between paychecks.