In the News: 1 in 3 Americans Overburdened with Credit Card Debt

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In the News: 1 in 3 Americans Overburdened with Credit Card Debt

1 in 3 Americans may have a serious need to file for bankruptcy.

At least, that’s what a recent survey indicates. 33% of Americans are worried they will max out their lines of credit if they have to make a purchase of $100 or more.

Default rates are up across all loan types. Interest rates are now, on average, over 17.4%. And collective credit card debt is at $1 trillion.

Maxing out your cards is a big indicator you’re in financial trouble serious enough to require filing. And while some publications offer cheerful advice on how to pay off your credit cards fast, the truth is paying down the debt is out of reach for most.

When you are, as most Americans are, using credit cards to cover what your paychecks won’t, “just pay biweekly,” or “shop around for a 0% APR card” is not very helpful advice.

It’s certainly not helpful to furloughed government employees. They’re not just losing paychecks. They’re losing reimbursements, too: checks for personal expenses charged to credit cards.

Some analysts say these figures are all warning signs pointing to a recession on the horizon. This could mean even more people needing to seek bankruptcy protection unemployment rises.

What does all this mean to you?

If you’re one of the Americans afraid of maxing out your card it’s time to consider filing. You might even want to do so before the economy gets any worse. It might be time to reorganize your finances, relieving some burdens so you can downsize and save.

Keep in mind that the Great Recession of 2008 led to reforms in the bankruptcy industry. We don’t know whether future changes in the law could be unfriendly to consumers. By filing now, you eliminate that uncertainty.   

It also means you’re not alone. Many people could benefit from filing. The era where it might have made any kind of sense to feel ashamed of having to file is long gone.

This is just the financial reality of our country right now thanks to thousands of political and economic factors well beyond the average family’s ability to control.

Not sure whether bankruptcy protection is right for you?

Give us a call. We’re available 24 hours a day to answer your questions. Your initial consultation is free, and we even offer payment plans.

You shouldn’t have to live in fear of credit card debt. Not when the means exist to set you free.

 

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