Analysts are working to inform consumers about the rise of credit card debt for American families. According to the latest statistics, the numbers related to credit card debt are fast approaching the levels that caused havoc for Florida families in 2008. In fact, analysts have warned that the new numbers show that many Americans may be headed toward an “unsustainable level”.
The average household has $7,100 in credit card debt. This marks the sixth consecutive quarter showing an increase in the average amount of debt for American households. The analysts claim that a level of $8,300 is the so-called tipping point of unsustainability.
There are several reasons believed to be behind the recent increase in credit card debt over the last several quarters. One is that people in their 20s are now getting credit cards, and they do not have a recollection of the catastrophe that unfolded in 2008, which was namely due to credit card debt. Another reason is that people have held off on big purchases and are now ready to buy again. For example, there are a large number of people seeking car loans again as families become willing to take on more debt.
Credit card debt can be particularly difficult to rise above, as was seen during the recession. While responsible use is always recommended, those who are having financial difficulties in Florida may want to inquire about means of discharging unmanageable debt before it gets more out of control. Bankruptcy can be a way to discharge debt and get a financial fresh start.
Source: New York Post, “Personal credit debt nears ‘unsustainable level’“, Gregory Bresiger, March 29, 2015