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Credit Card Debt Archives

U.S. credit card debt down in 2014, but due to defaults

Ohio residents who carry credit card debt could be interested in these facts according to the Federal Reserve. Total U.S. credit card debt as of September was $881.8 billion. U.S. mortgages and student loan debts are the first and second highest U.S. consumer debt, but credit cards are a close third. Households with such debts typically owe and average $15,608.

Getting out of credit card debt

When people get into overwhelming credit card debt in Ohio, they may feel like the debt crept up on them. However, credit card debt is usually something that accumulates gradually before it becomes unmanageable. Because most people are given a low credit card limit to start out with, the trouble begins when the limit rises, and the credit card holder becomes tempted to overcharge.

Ohio statute of limitations for credit card debt

Any resident of Ohio or individual who agreed to a credit card contract in Ohio may enjoy the protection that the state statute of limitations on the enforcement of contracts provides. Credit card companies that attempt to collect on a debt after more than six years has passed may find that the liability has expired and payment can no longer be legally compelled.

Ohio retirees facing mounting debts

Ohio residents may be interested to learn that as the Baby Boom generation approaches retirement age, many of its members are finding that they are saddled with considerable amounts of debt. The generation may face a number of different debts, including student loans taken out for themselves or their children, credit card debt, business debt and mortgages. These financial challenges may lead some people to delay retirement.

Consumer credit card debt increasing

Ohio residents are likely aware that many Americans are struggling with high levels of consumer debt. While expenses such as installment loans and medical bills play an important role, it's credit card debt that often causes the greatest problems for families struggling to cope financially. According to figures from the U.S. Federal Reserve, Americans in July 2014 owed approximately $880 billion in revolving debt, primarily credit cards.

Experts offer tips for reducing credit card debt

Many residents of Ohio are part of millions of others around the country who are plagued by seemingly unmanageable credit card debt. While making the minimum payment will keep bill collectors from calling constantly, there are some ways in which a consumer can pay off his or her credit card debt more effectively.

Verification of debts

For Ohio residents who are being contacted about credit card debt, it is vital to understand personal rights when it comes to paying debt. However, a person who is being pressured to pay a debt, especially one he or she believes may be incorrect, does have some recourse. The Fair Debt Collection Practices Act specifies that a person who is being asked to pay a debt may request verification of the debt in writing if he or she needs proof. If this request is made within 30 days of the collection agency's first contact about the balance, then the agency is obligated legally to stop contacting the person until the debt has been verified.

Times it might be okay to have high credit card debt

As a general rule of good financial responsibility, a person should focus on minimizing their debt. This is especially true of high-interest balances, including credit card debt. There are times, however, when an Ohio resident may consider carrying a high balance near the maximum credit limit on their cards. It is important to realize that there is strategy and reasoning behind a decision to have a high balance.

Paying down debt quickly

Ohio residents might be interested in learning more about how to pay off debt quickly. A reader of a national column on personal finances recently asked for advice on the fastest way to pay down credit card debt. They had incurred $50,000 in debt, with a 24 percent interest rate. They did this by transferring balances from one card to another and using credit line accounts, and the column assumed that the consumer was taking advantage of teaser introductory interest rates on credit cards.