Most Americans today are struggling to pay off their debt. Louisiana is one of the most debt-ridden states in the country. Half of people who live in this state have a debt that has gone to collections. Jose Bautista is the Professor of Economics who works at Xavier University. He stated that stagnant wages are one of the reasons that people today are struggling with debt.
If people do not have more money to spend, then they are forced to go into debt. However, Jose recommends that credit card use should be a last resort. Credit cards can make it difficult to get out of debt because of the high interest rates.
Many people cannot pay back their credit card debt because of the high interest rates. The good news is that there are ways that you can get your debt under control. You will need to make a list of your creditors and how much you owe. Check your credit report in order to confirm your debts.
You will also need to focus on paying off one debt at a time. It is best to pay off your credit cards first because they typically have the highest interest rates. You can start off by paying the card with the lowest balance first. After that, you can move onto the ones with bigger balances.
If you have any accounts in collections, then you will need to pay them off as soon as possible. A collection account can stay on your credit for up to 7 years. However, if you pay it off, then this will reflect on your credit report. You can also dispute the credit report once you get it paid off. Keep in mind that the creditors will continue to pursue collection activities until you have paid off your account.