Most Americans have credit cards and have some credit card debt. While many Florida card holders are able to manage their payments and avoid falling behind, others may find themselves victim to revolving credit and balances that keep going up due to accumulating interest. According to a recent statistic, Americans have about $944 billion in credit card debt, and consumers carry about half of that amount over each month.
When a credit card holder carries some of his or her balance over to the next month, that is called revolving credit. When credit card balances increase, it typically indicates consumer confidence and a strong economy, but it can also mean that some consumers may be in over their heads. This will be an even more pressing issue for some if the interest rates jump. Higher interest means higher balances, and for many, less of a chance they can catch up.
Other drawbacks to revolving credit are that some people may have little chance to get ahead, especially for those whose paychecks have not increased, along with higher costs of living over the last several years. Those with a lot of credit card debt are often also struggling with making mortgage payments and making ends meet. Revolving credit is most concerning for those who study economic trends and financial matters.
When a person is struggling with a significant amount of credit card debt and carries at least some of that balance over from month to month, it can be hard to manage. Along with other financial obligations, a Florida consumer may believe that he or she will never be able to get ahead. There are options available to overwhelmed consumers, including bankruptcy and consolidation.