Credit card debt in the United States
The amount of debt that Americans has accrued in the last 40 years is staggering. Unsurprisingly, the biggest leap can be pinpointed around 2008 during the financial crisis, and it has been steadily increasing since then.
The Federal Reserve estimates that consumer debt in the United States has now surpassed $4 trillion. The average person has a balance that sits around $6,500 and has about three credit cards.
Credit card debt and finances
Everyone knows that debt can take a serious toll on their finances. People may struggle to pay back their debts while still managing the stay on top of the cost of living. If someone has a large amount of debt and does not make substantial payments on time, their credit score goes down. This makes it hard to purchase a car, a home, or even to get approved to rent an apartment.
Credit card debt and overall well-being
When people can’t meet their basic needs and constantly stress because of credit card debt, their quality of life goes down. A study by NerdWallet found that:
- 1 out of 5 consumers who hold credit card debt say that is has harmed their health
- One-third of participants said that their debt has decreased their standard of living
- About 2 out of 5 said that it has diminished their overall happiness
Finding a solution
Financial stress like debt is an overwhelming burden to bear all by yourself. If you like many other Americans are suffering adverse effects of debt beyond financial, it may be time to work toward a comprehensive solution.
Filing for bankruptcy could be one possible solution. Filing for bankruptcy provides people who are at the end of their rope with a way out. Speak with an experienced bankruptcy lawyer to learn more about bankruptcy and if it is right for you.