Consumer confidence in the economy appears to be growing in Florida and all around the country. While this appears to be a positive trend, there is one financial indicator that is causing some concern among experts. The country’s credit card debt has recently reached a record high.
A personal finance website reported that the national credit card debt level is over $1 trillion. Furthermore, the debt added to that overall level in 2017 was the highest in the past 10 years. Reports show that the average credit card balance for every household in the country is over $8,500.
Despite the large amounts being added to debt, the rate of unpaid balance charge-offs remains relatively low. Unfortunately, the delinquency rate began to increase near the end of 2017. With this rise, many of the deals and promotional offers with credit cards may be curtailed as lenders make it more difficult to obtain credit.
Financial advisors warn that consumers are tending to spend more, while putting purchases on credit cards. The survey also revealed that 13 percent of people don’t recall how their debt started in the first place. Mortgage payments still represent the largest amount of household debt for most people.
Though many signs point to a stronger economy for many people in Florida, there are still those who are struggling. Credit card debt can be a major concern for consumers. Anyone who wishes to reduce or eliminate credit card balances should seek the guidance of a trusted bankruptcy attorney. A respected lawyer will help clients develop a plan to help get their finances back into shape.
Source: ABC News, “Credit card debt surpasses $1 trillion in the US for first time“, Nataly Pak, March 8, 2018