The country’s consumer confidence level is the highest it has been in 15 years. This confidence has prompted many consumers in Florida and around the country to increase their spending. According to a personal finance website, much of this spending is being done by people using credit cards. As a result, national credit card debt levels are at their highest since 2007.
Financial experts predict that credit card debt will exceed $1 trillion in 2017. The previous highest levels had come a decade ago before the housing crash. Analysts report that consumers are paying their bills on times, thus pushing charge-off rates down. However, they are concerned that many people now charge such payments as mortgages or rent on their credit cards.
While some economists are worried about this trend, others are not as concerned. One expert at a leading economic research and risk management firm contends that consumers are not excessively in debt. He reports that debt as a percentage of total income is at a 35-year low.
Those concerned argue that economic fluctuations could cause borrowers problems. Changes in inflation, wage growth and consumer prices can all affect the amount of money available to make credit card payments. Also, medical expenses could significantly increase if people lose health care coverage. Any increase in expenses could make it more difficult to pay bills on time.
A Florida family concerned with credit card debt may decide to contact an attorney familiar with bankruptcy laws. An experienced lawyer can help consumers develop a plan to reduce their debt and get back on track financially. A strong legal team can provide information on other possible solutions to regain financial stability, such as bankruptcy or loan modifications.
Source: CBS News, “U.S. credit card debt at highest level in a decade“, Jonathan Berr, Mar. 9, 2017