There are a variety of reasons why people in Davidson open credit card accounts. While some people are able to pay off their monthly balances, others are less fortunate. For those who do end up owing a lot of money on their credit cards, the situation can be overwhelming and embarrassing. However, this problem may be more common that some people might think.
A new study has shed some light on the current status of credit card spending across the United States. The amount of outstanding credit card debt has reached its highest number in ten years. This is important because how much debt people have on their credit cards is usually indicative of how well they doing overall financially. The average amount of credit card debt per household in 2016 rose 6 percent from the previous year to $8,377.
Looking at the bigger picture, the overall amount of credit debt in the country rose by $89.2 billion last year. The fourth quarter alone saw an increase of $60.4 billion. This is worrisome since these numbers are near the amount of debt that existed prior to the beginning of the Great Recession. It remains to been whether this trend of increased spending will continue or if levels will taper off.
While not being able to pay off debt can be disheartening, there are solutions available. Debt consolidation, balance transfers and bankruptcy are just some of the ways that consumers can deal with their unpaid bills. People who are facing large balances on their credit cards may wish to contact an experienced attorney.
Source: Money Talks News, “Credit Card Debt Hits 10-Year High: What That Means For You,” Karla Bowsher, March 13, 2017