Taking on more and more debt, while still paying on-time monthly payments, is not a healthy situation. It’s actually referred to as a “Debt Spiral.”
Sometimes people add to their credit card debt because of an emergency which they don’t have the savings to pay for, such as car repairs. Other times, people rack up more credit card debt and don’t feel very concerned about it because they make a good income and feel that they can afford it. However, a debt spiral is going in the wrong financial direction. Life happens, and someone who can easily handle a lot of debt might hit a financial bump in the road, such as an accident or job loss, which can make juggling that debt much more difficult.
The first step to reversing that growing debt is to avoid using credit cards for the time being. It’s hard to put out a fire if we’re adding more fuel to the fire at the same time. Some people put up, or cut up, the plastic to help with this.
Another solution is making a free appointment to talk with one of non-profit CCOA’s certified financial professionals. Our financial pros average having 20 years of credit counseling personal finance experience. Talk to your professional for an hour and get an unbiased review of your personal finances, a budget created together, and an Action Plan of recommendations tailored specifically for you. A Debt Management Program is an available option for people to utilize to get out of debt. Just call (479) 521-8877 to schedule your appointment for in person (our Bentonville, Fayetteville or Fort Smith office), or for phone or online. You may also schedule by filling out our form https://www.ccoacares.com/request-appointment/