On behalf of Trenton Grand of Grand Law Firm posted in Bankruptcy on Thursday, December 20, 2018.
It would take longer for the average Louisiana household to pay off credit card debt than for almost any other state in the country. According to data published by CreditCards.com, the average household credit card debt in Louisiana is $8,110, and it would take the average household 17 months to pay it off. Nationwide, people are struggling with debts of all kinds; where a person lives makes a difference when it comes to credit card burden.
The state with the longest credit card burden is New Mexico where the average household income is $46,744 per year and the average household outstanding credit card debt is $8,323. CreditCards.com calculated that it would take people in New Mexico, on average, 18 months to pay off credit card debts and they would pay an extra $1,320 in interest over that time. The time calculations were based on the strategy of dedicating 15 percent of income to pay down debt.
Nationally, the average American household has credit card debts of just less than $7,000 according to findings based on Federal Bank of New York data. That average balance might accrue more than $1,000 worth of interest, and credit card interest rates are expected to rise in the future.
People in Louisiana who are struggling to keep up with financial obligations might have options to reduce or eliminate debts. Bankruptcy attorneys are familiar with the world of consumer debt, and they may be able to help a person organize and examine their finances or negotiate workable terms of repayment with creditors. In a case where a person has regular income but cannot afford to meet monthly debt obligations, a Chapter 13 bankruptcy might allow for repayment on an affordable schedule. An attorney may be able to help the client by drafting and filing a petition for bankruptcy relief or by representing the client during official proceedings.