Credit cards have been around for decades. In our modern economy, some businesses have made them a mandatory method of payment, in fact. A recent study showed that the average American family holds 8 cards, using them from for everything from weekly groceries to paying for medical bills. As a result, the overall amount of credit card debt in the United States is at record levels. So if you think you are alone in your credit card debt worries, rest assured, you are not. But you may be one of many people who are no longer able to manage their credit card bills or even make minimum payments.
If you have credit card debt, you may think you have no way out. Due to accumulating interest and growing balances, it can feel impossible to ever get ahead. In your situation, it may be beneficial to consider how filing for consumer bankruptcy can help you finally get ahead and deal with your debt once and for all.
Understanding the debt crisis
Reports indicate that Americans now have $870 billion in credit card debt as of the beginning of this year. This is the highest amount ever. If you want to take back control of your own financial situation, it may help to understand this type of debt and what factors play a role in out-of-control credit card balances:
- Credit card debt often increases at the beginning of a new year because people tend to spend more during the holiday season.
- There are now almost 100 million more credit cards in circulation now than there were 10 years ago – more cards leads to more spending and more debt.
- Credit card debt is rising faster than other types of debt, including mortgage debt, student loan debt and more.
- Approximately 37 million credit cards are delinquent by 90 days or more.
Credit cards can be useful tools, but they can also be quite dangerous for your financial situation. One medical emergency or unexpected expense can send your balances to levels that you cannot manage on your own.
A way out
If you are unsure of how you can deal with your credit card debt and emerge to a better financial future, it may help to consider the benefits of bankruptcy. Many types of unsecured debt, such as credit card debt, are eligible for discharge in this process. This means you will emerge from this process without that debt hanging over your head.
If you are currently struggling with credit card debt, you may want to start by learning more about bankruptcy and what to expect if you move forward with it. Knowing all of your options can help you make smart choices for your future.