At first glance, the U.S. as a whole may seem to be in pretty good shape when it comes to credit card debt. Around $32.5 billion in credit card debt was paid off by American consumers in 2014’s first quarter and the default rate is currently at a relatively low level, around 3.3 percent.
However, some other statistics indicate that credit card debt troubles may be around the corner. While a fair amount of credit card debt was paid off in first quarter 2014, it is less than has been paid off in other recent first quarters. For example, it was 28 percent lower than first quarter 2009’s credit card debt payoff total.
Also, it is currently estimated that, by the end of this year, America’s credit card debt total will have gone up about $42 billion from last year, around an 8 percent increase. Some experts claim that credit card companies loosening their qualification requirements regarding who they offer credit cards to and consumers being a little less careful about debt than they have been in the past few years are behind this increase.
So, it appears that payoff amounts are lessening while credit card debt totals are rising. Some are concerned that this indicates that many Americans may be putting themselves in a credit card debt situation in which an unexpected financial shock could lead to them facing debt struggles.
Exercising proper care when it comes to credit card debt or any type of debt for that matter is really important. It can help a person better able to handle financial shocks. Of course, sometimes even when a person is careful, things happen which leave them in a situation in which their debt is overwhelming.
Aggressive debt collectors, an array of collection methods and massive hits to one’s credit are among the things problems with credit card debt or other kinds of debt can lead to a person facing. Thus, seeking out help when one is in such a situation can be very beneficial. Experienced debt solution attorneys can provide guidance to individuals who have fallen behind on debt payments.
Source: TIME, “The Credit Card Bomb Just Waiting to Go Off,” Martha C. White, June 11, 2014