The further away the country gets from the recession, the more comfortable its citizens, including Florida residents, feel in using credit cards. In fact, 2015 saw a resurgence of credit card debt across the country that is quickly approaching pre-recession levels. Estimates indicate that each family in America is carrying an average of approximately $9,600 in debt from credit card use.
During the recession, many people turned away from credit cards. However, some of them are now using them once again. Fortunately, the data also indicates that consumers are able to keep up with their payments. Some analysts are concerned, however, that interests rates could go up this year.
If that happens, the increase could be passed on to credit card users. Even a small increase in interest could mean hundreds or thousands of dollars a year for consumers. This could provide the beginning of a slippery slope for those who are currently able to make payments. In many cases, a consumers needs only to ask for a reduction in interest rate from a credit card company, but that may not be possible for some consumers.
Credit card debt can easily become overwhelming for Florida residents who may just be returning to the financial status they had prior to the recession. However, their financial situations could easily become overwhelming once again. When an individual is drowning in debt, bankruptcy might be a viable option for obtaining a fresh financial start. Without the burden of unsecured debt, a filer might be able to rebuild his or her financial life and avoid debt collection efforts, including lawsuits and wage garnishments.
Source: abc7news.com, “7 On Your Side: Credit card debt grows in 2015 among Americans“, Michael Finney, Dec. 31, 2015