When the recession hit, many American families found themselves drowning in debt. One major unmanageable source of debt was credit card debt. For Florida residents, credit card debt led to an upswing in bankruptcy filings. While the recession has waned and the economy has improved, credit card debt is back on the rise, giving experts cause for worry.
The average credit card debt has risen for families again. It has risen to about $7,200 for the average family. According to experts, $8,300 in credit card debt is considered unsustainable. This marks six consecutive quarters of an increase in credit card debt for Americans.
While credit card debt is creeping up, earnings simply aren’t creeping up as much. In fact, it is estimated that earnings are not much more than they were a decade ago. The increase in 10 years amounts to a 2 percent increase. While the increase is attributed to an increase in positive feelings about the economy, it is also being said that half of all Americans consider themselves financially insecure.
The rise in credit card debt the last few years may make it more difficult for some Florida families to regain any financial control if there was to be another economic collapse. Any kind of unsettlement or change, such as job loss, can create financial chaos for those already struggling with debt. For some in the past and possibly in the future, bankruptcy may be the ideal tool to discharge overwhelming credit card debt or deal with an unmanageable financial certainty.
Source: CBS News, “America’s skyrocketing credit card debt“, Aimee Picchi, March 10, 2015