Financial industry experts report that the economy in Florida and around the nation is steadily improving since the recession in 2008. One indicator of this improvement is a willingness to lend money to consumers again after years of strict guidelines. While this is a sign of a strengthening economy, levels of credit card debt and other consumer debt are increasing for many households.
In addition to credit card debt, other consumer debt can include student loans, auto loans and mortgages. A personal finance website reports that consumer debt in this country now exceeds $1.3 billion. The median credit card debt alone is greater than $16,000.
While financial institutions are much more likely to loan money, there is a steep price to pay. Interest rates are increasing, creating higher payments for those consumers carrying balances on their credit cards. Many use credit cards as a method to pay for everyday expenses and can quickly find themselves trapped by this debt.
Some experts suggest that refinancing an auto loan can often result in a better rate to save money. Other financial planners advocate paying off those credit cards with the highest balances first. Many suggest a debt consolidation loan to pay off debts with high interest rates. However, the most important action to take is a change in spending habits.
Credit card debt may seem overwhelming for many Florida residents. An experienced bankruptcy attorney will help consumers evaluate their situations and determine the best course of action. A knowledgeable lawyer can work with clients to develop a plan to regain control of finances.
Source: gurufocus.com, “Household Debt Is Enslaving Americans“, Larry Alton, May 22, 2017