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SOUTH CAROLINA
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Handling credit card debt in South Carolina

While there is such a thing as good debt (for example, a mortgage on a home) that represents a positive investment in the future, not all debt can be called good.  South Carolina residents are probably already aware that "bad" debt often takes the form of credit card debt, since purchases made on a credit card are likely only to depreciate in value.  However, there is support available for individuals facing heavy credit card debt. 

But how exactly does credit card debt influence a credit score?  Some individuals may be interested to know that credit scores measure a ratio of balance owing to balance available, rather than a dollar number.  For example, an individual carrying $2,000 on a $4,000 limit card is carrying 50 percent of his or her total balance available, whereas someone carrying $4,000 on a $10,000 limit is only carrying 40 percent.  Even though the dollar amount is higher, the credit score is better. 

Another consideration to bear in mind when managing credit card debt is to consider how much an individual or household can reasonably expect to borrow while still paying it back.  It is important to consider more than just the minimum payment. For many, the minimum payment accounts only for interest and a small fraction of the principal balance.  

Ultimately, there are many reasons why a South Carolina resident may find him or herself facing credit card debt.  Certainly it is not always because of poor spending habits but can come from a variety of sources.  Nevertheless, support is available, and debt reorganization and bankruptcy are always options open to individuals struggling with unmanageable debt.  

Source: fool.com, "How Much Credit Card Debt Is Too Much?", Matthew Frankel, Oct. 5, 2014

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Reed Law Firm, P.A.
220 Stoneridge Drive,
Suite 301

Columbia, SC 29210

Phone: 803-726-4888
Fax: 803-726-4887
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Reed Law Firm, P.A.
1807 West Evans Street,
Suite B

Florence, SC 29501

Phone: 843-679-0077
Fax: 843-679-0667
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