It’s official. Debt is a four letter word, and as the economy continues to struggle many don’t want it any more. Credit card debt in particular has consumers worn and many are hesitating to take on any new debt. Credit card companies are not issuing credit like they once did, and more creditors are reaching the point where collection efforts expire. All in all, household debt decreased by $60 billion from the previous quarter, and that applies to both credit cards as well as mortgage debt.
In addition to new credit card accounts not being opened, and more credit card accounts being closed, more people are renting instead of buying homes, reducing mortgage debt as well. For those who do own homes, many are taking out home equity loans, often to try to increase their home’s value or even pay down their credit card debt.
The one area where debt is increasing is through student loans. This is occurring with both the traditional students and with those who are going back to school during this time when work is hard to find and school seems wise. Consumers are hoping that student loans will turn out to be an investment, but like so many other things in life there is no guarantee.
When you’re faced with credit card debt or other debt it is easy to try and grasp at straws to try and figure out a way to get out of debt. There are many ways an attorney may be able to help you, whether it means credit counseling, or even filing bankruptcy. Before you go trading one debt for another, you’ll want to discuss your options and see the best way to get a handle on your finances.
Source
CNN Money: “Consumers continue to unload debt,” Julia Talanova, Nov. 29, 2011