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Lack of financial knowledge may contribute to credit card debt

Many Texas residents may struggle to fully understand their finances. Numerous others may rely heavily on credit in order to makes ends meet, and due to their lack of financial literacy, they may also face a considerable amount of credit card debt. It is not just state residents that may face this issue as recent reports indicated that people across the country lack proper financial knowledge.

The report indicated that 1,000 individuals across the United States over the age of 30 participated in a study relating to financial information. The study apparently found that less than half of those people knew what a 401(k) was or did. Additionally, 48 percent of participants were uncertain about the definition of "interest," and 48 percent also did not have confident knowledge regarding bankruptcy.

Individuals with considerable debt are also not alone if they feel they do not know how to create a workable and stable financial plan. Reportedly, 55 percent of those who participated in the study indicated that they did not know how to create such a plan. Furthermore, 31 percent of the individuals stated that they felt that they would always be burdened with some kind of debt.

Accruing credit card debt or other balances and a lack of financial knowledge can often go hand in hand. If Texas residents do not fully understand bankruptcy, they may be avoiding an option that could help them obtain a fresh financial start. Therefore, if parties are consumed with substantial debt, they may wish to consider gaining more information on bankruptcy and other debt relief options.

Source: nypost.com, "Americans are clueless when it comes to personal finance", Sam Paul, Jan. 18, 2018

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