Both the poor and wise use of credit has been revealed by research from NextAdvisor.com to be shared in roughly equal measure between the sexes. The study on credit card debt does more than eliminate perceptions of one gender being more financially responsible. It also shows New Jersey residents some of the mistakes most commonly made among people who end up with unmanageable monthly payments and overwhelming debt.
For instance, carrying a debt on one or more credit cards past the card’s grace period subjects the principal balance to the effects of compound interest. A balance higher than the credit limit could also reduce an individual’s credit score. Ongoing credit debt was seen with 60 percent of women and 55 percent of men. Another problem is the cash advance feature on many cards. This feature was used by 15 percent of men and 12 percent of women, and it generally results in higher interest charges.
Good credit behavior involves avoiding card features that increase the interest rate and, in the best circumstances, paying the monthly bill in full to avoid all interest charges. On average, cardholders tend to not borrow as wisely as necessary to eliminate their interest burdens. An average card debt of $12,953 for men and $11,486 for women shows why many people are looking for ways to discharge credit card debt.
An effort to eliminate credit card debt, or just stop creditor harassment, requires the individual to take stock of their entire financial situation alongside the legal options. In some cases, bankruptcy may be the best avenue toward a brighter financial future. Every case is unique, however, and a bankruptcy attorney may be the best person to help compile the necessary information and review the possible options.
Source: Daily Finance, “Bad Behavior: Men, Women and Credit Card Deb“, Michele Lerner, May 22, 2013