These days, it seems like so many people across the state of Michigan have overwhelming credit card debt. For many consumers, the ease of online shopping may have facilitated overspending and caused their credit card debt to spiral out of control. Bankruptcy is an option but should be a last resort. The following advice may help credit card users to control debt and limit online spending.
Always budget
Although credit cards are great ways to earn rewards while making purchases, it’s just too easy to use them for things that are unnecessary or unaffordable. A budget can help an individual get an idea of how much he or she can spend and pay off each month to avoid spiraling debt. One of the most popular budgeting methods is known as the 50/30/20 method. This means spending 50% of income on necessities like groceries and housing, about 30% or less on items wanted but not needed, and 20% or more will go to paying off debt or savings. This type of budget will help to keep credit card spending in line with income.
Track purchases
Keeping a record of purchases can be extremely beneficial. Many credit card companies have mobile apps or features on their websites that can help users keep track of the purchases they’ve made throughout a given month. Once an individual has met the monthly spending limit, he or she should avoid using the card until paying the balance off.
Automatic payments
One of the best ways to avoid high debt is to set up automatic monthly payments. Try to pay more than the minimum amount and schedule the payments before the due date each month. This will help to avoid late fees.
Unfortunately, those who fail to control online shopping and unnecessary spending will accrue massive amounts of debt. For those in Michigan who are drowning under loads of consumer debt, the best choice may be to file for bankruptcy. Chapter 7 bankruptcy can wipe out many types of unsecured debt, but not without consequence. Before pursuing bankruptcy, one should consult a seasoned and knowledgeable bankruptcy attorney who can evaluate an individual’s situation and provide guidance.
