Credit card debt in and of itself is not necessarily an indicator of financial hardship. However, a sharp increase in credit card debt or a failure to pay off that credit card debt in a timely manner may be one. Miami, Florida, recently made news as a leading area when it comes to the growth of credit card debt. Already an area struggling to fully recover from the recession, Florida residents may need to look into bankruptcy or other solutions to keep credit card debt from ruining a financial future.
The latest figures indicate the amount of credit card debt rose almost 10 percent in the second quarter of this fiscal year compared to the same quarter last year. The national average rise was only just over 5 percent. This puts the amount of credit card debt for the area at nearly $10 billion.
While some noted the rise in credit card debt may indicate an increase in consumer confidence, others see it as troubling for the Miami area. Figures indicate those in Miami who have credit card debt take longer than others to pay off that debt. In fact, Miami’s timeframe to pay off credit debt is the fourth highest rate in metro areas throughout the country. Simply put, while the debt is getting paid, it is taking longer to pay it off.
For some, credit card debt may be manageable. For others, it may be the cusp of economic disaster and long-term financial chaos. While there are many options out there, those in Florida who have a hard time juggling credit card debt may want to consider bankruptcy as an option. Bankruptcy can allow for the discharge of that credit card debt, freeing up funds to regain control of other sources of debt.
Source: miaminewtimes.com, “Miami Tops Nation in Credit Card Debt Growth“, Kyle Munzenrieder, Aug. 4, 2015