For many individuals in Oregon and elsewhere, debt may seem like a part of everyday life. Recent reports suggest that the average home carries credit card balances in excess of $15,000 alone. While these balances might not prove troublesome at the moment, with high interest rates that are expected to continue to rise, if individuals cannot find a way to reduce or eliminate balances, they could face significant financial challenges in the future.
Many credit cards already come with high interest rates, which could make carrying a revolving balance somewhat risky. However, these rates will only continue to rise as the federal funds rate increases, which is expected to occur as many as three more times this year alone. These increases can have a direct impact on interest rates in a variety of lines of credit, such as those pertaining to credit cards and home equity loans.
When seeking to cut down on debts, an individual might find it advisable to revisit his or her previous plans and place more focus on debts that will be affected by these changes. As interest rates continue to increase, paying off credit card balances can become more and more challenging. Those who are only able to make the minimum payments on such balances may find that most of their payments go directly toward interests, and their balances could continue to rise.
Staying in control of finances is an essential goal for many individuals, but it can also prove a daunting task. Those who have concerns about their financial future could speak with a bankruptcy attorney for guidance on the options that are available to them. An attorney in Oregon can provide a client with advice in forming a plan to reduce or eliminate debts such as those pertaining to credit card bills and pursue a brighter financial future.
Source: cnbc.com, “To knock out debt faster, it’s time to reassess your payoff plan“, Kelli B. Grant, Jan. 29, 2018