Reports have indicated that more consumers are combating their credit card debt and focusing more of their income towards paying down what they owe on their charges. There have even been indications that some homeowners consider credit card debt repayment to take priority over their mortgage as many are dependent upon on their credit card in order to simply keep afloat and meet their basic needs.
However, many cardholders have been using a variety of methods to combat their credit card debt. For instance, some have used consolidation loans while others have simply made repayment plans that have allowed them to attack one source of debt at the time. It’s highly dependent upon a card holder’s personal financial situation and financial habits as to which method is best, but many are simply trying to keep their credit card debt at bay so that interest will not build and they can still charge.
While some believe that it is more cost-efficient to combat credit card debt separately versus with a consolidation loan, many cardholders feel that unless they keep their minimum monthly payment up-to-date they will be unable to survive much longer since unemployment and unemployment are still wreaking havoc on the personal financial lives of many Americans.
Simply put, cardholders who are attempting to use their credit card to stay afloat may find themselves in a worse financial position down the road if they only meet minimum monthly payments, which can allow interest to build over time. While this could cause a cardholder to pay more over the long run, many cardholders are unconcerned with this at the present time since they are in a poor financial situation and simply need their credit cards to afford basic necessities.
Credit card debt, mortgage debt, and basics like food, electricity, and gasoline are what many Americans are concerned with currently and until the job market improves and income opportunities return, cardholders are simply making their credit card debt a high priority so that they can continue to buy on credit those things which they cannot go without.