Most Americans have credit card debt, and most people with credit cards do not pay the balance off in full each month. For many Florida consumers, this balance accumulates quickly, leaving them with more credit card debt than they can effectively manage. In fact, the rate of card holders who are delinquent on their balances is increasing rapidly.
The rate of delinquent card holders is slowly growing every quarter, growing from 3.5 percent to 4.4 percent between the first and second quarters. Credit card debt is often indicative of other financial problems, and it is quite normal for individuals with this type of debt to have other types as well. From the first quarter to the second quarter in 2017, there has been a slight increase in the amount of car debt and mortgage-related debt.
A large amount of credit card debt is not healthy, and financial experts say that this issue could lead to more financial problems if an emergency arises. When the unexpected happens, people may be more prone to pay for things on credit, adding to an already growing debt balance. Across the country, revolving debt balances are also growing.
Florida consumers who have a lot of credit card debt may find that they are eventually unable to manage their balances or even keep up with minimum purchases each month. When this happens, bankruptcy could be a viable option. This process allows for the organized discharge or payment of many types of debt, including that from credit cards, allowing the applicant to emerge from the process to a better financial future.
Source: marketwatch.com, “One major way U.S. credit card debt is getting worse“, Maria Lamagna, Aug. 17, 2017