Americans owe a cumulative $900 billion to credit card companies. According to the Consumer Financial Protection Board, there are reasons to be worried that it will be difficult to pay off this balance in a timely manner. Of course, there are also reasons to believe that Tennessee residents and others shouldn’t worry too much about paying down their debt. Low unemployment and low interest rates have made it possible for debtors to make their payments in a timely manner.

Furthermore, much of the debt that has been accumulated has been racked up by those with good or excellent credit. This means that they are paying their balances down at a lower interest rate. Furthermore, Americans are confident that the economy is going to remain solid for the foreseeable future. Businesses are forecast to increase their salary budgets by 3.3% on average in 2020.

Individuals may want to consider creating an emergency account so that they don’t have to rely on credit cards as much. It is also a good idea to pay down a credit card balance in full each month to guard against paying too much interest. Credit card debt relief programs can also help those who are in need of assistance paying down their balances. However, seeking debt relief may result in a lower credit score in the short-term.

Individuals who seek debt relief might find it by filing for Chapter 13 bankruptcy. Doing so may allow a debtor to reorganize credit card, mortgage and auto loan balances into a single monthly payment. If a debt balance remains after the repayment period ends, that balance may be wiped out. An attorney may be able to help an individual learn more about the benefits of bankruptcy such as the automatic stay.