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The holidays could lead to high credit card balances

| Nov 17, 2020 | Chapter 7 |

Although the holidays will look different for many Louisiana consumers this year, it will still be a time for additional spending due to gift-giving. It is common to purchase gifts and charge travel expenses on credit cards, leaving many in debt as they go into the new year. High credit card balances can lead to financial struggles in other areas, making it difficult to keep up and make monthly payments. It is helpful to plan now for ways to manage credit card spending through the end of the year.

A recent poll found that a significant number of cardholders who are already in debt view the holidays as a valid reason to spend more. With credit cards carrying an average of 16% interest, it is easy to see how additional debt can lead unmanageable balances. One way to avoid additional financial hardship during the holidays is to go ahead and set a budget now for gifts, travel and food costs.

Because of difficult economic struggles many are currently facing, it may be especially important to be careful when buying gifts this year. Lower-cost holidays will be essential for some Louisiana families. Planning ahead of time can help avoid unexpected expenses that can drive up credit card balances.

High credit card balances may result in debt one cannot effectively manage. In some cases, pursuing consumer bankruptcy may be a practical choice as a way to deal with these balances once and for all. An assessment of the individual situation can reveal if this is an appropriate and beneficial option for addressing unsecured balances, such as credit card debt.

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