When the recession struck in 2008, many in Garnerville or Rockland, New York, as well as nationwide, started to cut back on credit card debt, whether voluntarily or as a result of simply not being able to afford it anymore. Now, after a lapse of years, credit card debt balances are on the increase again.
The latest figures showed an increase in total credit card balances nationwide from $533.3 billion in July of 2012 to $536.5 billion a year later. There was no such increase in any of the prior four years. In the first five months of this year alone, $77.7 billion of new credit was opened. This showed an increase of approximately 6 percent from the prior year and the highest such figure in the last five years.
Carrying large credit card balances can often lead to financial troubles, as it can be tempting to only pay the minimum monthly payment a credit card requires. That sometimes covers interest only or even less, causing the balance rise until it is unmanageable.
For those who get in over their heads, a personal bankruptcy, whether a Chapter 7 or a Chapter 13, can be a way out. It gives a person a new financial start in life and discharges some or all of unmanageable credit card debt. An experienced bankruptcy attorney can explain the available options, and how it may be possible to file bankruptcy yet retain valuable personal assets such as a home or car.
Some use credit cards to pay for items or a general lifestyle that they can't afford. All too often, a job loss, or a major illness or injury may cause income flow problems that can result in inability to pay credit card bills or other debts, including home mortgages, home equity lines of credit, payday loans or auto loans.
Source: Wall Street Cheat Sheet, "Are Americans Cozying up to credit card debt again?" Eric McWhinnie, Sep. 06, 2013