Americans are drowning in credit card debt. The average household owes around $6,000, and it can feel impossible to get back on track. If you are feeling overwhelmed, you’re not alone.

Today we’ll talk about the typical amount of credit card debt, what factors influence it, and when it becomes a serious problem. If you’re struggling with credit card debt in Houston and may be facing a debt lawsuit, our experienced attorneys at Heston Law Firm can help. Contact us today for a free consultation.

The Reality of Credit Card Balances in the US

Recent data from the Federal Reserve shows that total outstanding credit card debt in the U.S. exceeds $1 trillion. Individually, debt levels vary significantly from person to person. Some households may only carry a small balance, while others struggle with five-figure debt. In fact, according to Experian, 34% of Americans have credit card balances exceeding $5,000.

Over the past few years, we’ve seen credit card debt steadily climb as inflation and rising interest rates squeeze household budgets. This financial pressure can quickly snowball. If you’re already in debt and start receiving collection notices or, even worse, threats of debt lawsuits. The stress of mounting debt and aggressive collection tactics can take a toll on your mental and emotional well-being.

When Does Credit Card Debt Become a Problem?

While some credit card debt is common, it can quickly spiral into a serious financial issue. Here are a few key indicators that your credit card debt may be becoming unmanageable:

• High Debt-to-Income Ratio (DTI): Your DTI compares your monthly debt payments to your monthly gross income. A high DTI (generally above 36%) indicates that a significant portion of your income is going towards debt repayment, leaving little room for savings or unexpected expenses.
• Maxed Out Credit Cards: Using a large percentage of your available credit (known as credit utilization) can negatively impact your credit score. Aim to keep your credit utilization below 30% on each card and overall.
• Missed Payments: Late payments trigger late fees and penalty interest rates, making it even harder to pay down your balance. They also damage your credit report, making it difficult to obtain loans or credit in the future.
• Collection Calls and Lawsuits: If you’ve fallen behind on payments and are facing relentless collection calls or even lawsuits, it’s a clear sign that you need professional help to address your debt.

Don’t wait until you’re facing a lawsuit or bank account garnishment. There are options available, and an experienced credit card debt attorney can help you understand your rights and explore the best course of action for your situation.

How a Credit Card Debt Attorney Can Help You

Dealing with aggressive creditors can be incredibly stressful. In Texas, debt collectors are subject to the Fair Debt Collection Practices Act (FDCPA), which prohibits harassment, threats, and misleading information. If you’re being hounded by creditors, a credit card debt attorney can:

• Halt creditor harassment: Your attorney can communicate with creditors on your behalf, putting a stop to those relentless calls.
• Negotiate with creditors: An attorney can work to negotiate lower interest rates, waive fees, or create a more manageable payment plan.
• Explore debt relief options: Depending on your circumstances, your attorney can advise you on options like debt consolidation, debt settlement, or even bankruptcy.
• Protect your rights: An attorney ensures creditors adhere to the FDCPA and safeguards you from unfair debt collection practices.

Take Back Control with a Credit Card Debt Attorney

Understanding your situation and exploring your options is the first step towards financial freedom. If you’re struggling with credit card debt or a debt lawsuit in Houston, contact Heston Law Firm today for a free consultation. Our experienced attorneys can help you find the best solution for your debt situation.