It's that time of year. You're likely spending a bit more money than you typically do throughout the year because the holiday seasons have begun. Whether you host your extended family for a Thanksgiving gathering or are among thousands of California shoppers who stand in long lines at department stores for Black Friday sales, it is not uncommon to start racking up credit card debt between November and January.
Debt has become a way of life for many in California and across the country. At best it's utilized with a big-picture plan in place consistent with using only as needed, resources to enable an ultimate pay off and not letting debt service overtake the budget. More problematic is when carrying credit debt is not optional, and it's a sign of crisis when only the minimum payments are made each month. If that's the case, it may be time to consider negotiating a debt-forgiveness plan.
According to a report from Lending Tree, California residents who file for bankruptcy may be able to rebound from it relatively quickly. The report indicates that about 40 percent of Americans have a credit score of 640 within a year of filing. That improves to 65 percent within three years of filing. Having a good credit score is one of the most important attributes to have when applying for a mortgage after a bankruptcy.
In the first quarter of 2018, California residents and Americans throughout the country owed a total of $13.21 trillion in debt. Of this total, $1.41 trillion was in the form of student loans while they owed another $815 billion in credit card debt. For those who are interested in paying down their balances, the first step is to learn more about the balances that they owe.
Women in California might be in greater danger of falling into debt than men. According to data from Comet Financial, the economic disparity between men and women is not just about wages. Women have more debt than men do as well, and that wage gap may be one significant reason this is the case. On average, women have more than $6,000 in student loan debt compared to men and more than $1,000 in credit card debt and medical debt.