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Last year’s credit card debt outpaced predictions

On Behalf of | Jan 10, 2019 | Credit Card Debt, Firm News

Coming out of the holidays and into the new year can be an uncomfortable experience for some people in Florida. While virtually no one plans to become entrenched in debt, it is sometimes hard to escape. From feeling obligated to purchasing gifts to traveling to visit family, the holiday season can put a serious dent in some people’s credit card debt as well as their financial security.

In Nov. 2018, consumer debt in the United States climbed much faster than the previously estimated pace of growth. Much of this growth has been contributed to borrowing in order to make various purchases. In total, credit balances grew by $22.1 billion in a single month, which came after a $25 billion gain from Oct. of the same year.

Surprisingly, revolving credit — including credit cards, which allow consumers to borrow more money as they repay older debt — only rose $4.77 billion in November after a $9.34 billion increase in October Experts say this shows that consumers might have been feeling more cautious as they approached the holiday shopping season, and as such they borrowed less money. The news is not all bad, though. Current American consumer spending habits could indicate a healthy and robust economy.

A well-performing economy may not mean much for a consumer who is otherwise struggling to repay his or her debts. These individuals often end up feeling more lost than ever, perhaps even frustrated that they are drowning in debt while they continually hear information about job growth and improved economic standards. This is not an isolated experience, and many people in Florida are in this exact situation. Struggling with credit card debt does not have to be a lifelong pursuit, though, and those who choose to work toward a more secure future may choose to pursue personal bankruptcy.

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