There have been some positive signs in the economy for Florida residents and others across the country. However, for the first quarter of 2017, the nation experienced a slight increase in all loan categories of household debt, except for one. According to a personal finance website, credit card debt was down by almost 2% per household.
The decrease meant that each household’s debt decreased by approximately $300. While credit card debt saw a decline, mortgage debt increased the most since last quarter. The rise in mortgage debt was almost $4,000 per household or 2.15%.
Experts cite New Year’s resolutions as a possible reason credit card debt decreased. Many consumers decide they want to meet specific financial goals, such as paying off personal debt. Conversely, while some are paying on credit card debt, others are taking on more long-term debt, like a mortgage.
Analysts recommend that consumers focus on paying high-interest credit card debt first since there are generally high levels of fees and interest associated with those accounts. While paying off this debt, it is important to pay all other accounts on time. Maintaining a schedule of what and how much needs to be paid help keep accounts in good standing.
In some cases, credit card debt may appear to be overwhelming. It is important for someone to understand all the available options. An experienced Florida bankruptcy attorney can help someone fully understand the situation and recommend the best course of action for a client. The mutual goal will be to take the necessary steps to get back on track financially.
Source: nerdwallet.com, “Credit Card Debt Shrank in Early 2017“, Erin El Issa, July 6, 2017