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Americans continue to accumulate debt

| Feb 15, 2020 | Uncategorized

Florida residents and others accumulated a total of $22.1 billion in credit card debt in December 2019. A survey of economists had expected that total to grow by $15 billion. The actual increase represented an annual growth rate of 6.3% for the month. However, credit card debt growth rose by 4.7% for the entire year, which was unchanged from 2018. It was also lower than the 5.1% increase that was seen in 2017. These numbers suggest that credit played a role in helping the economy remain relative strong during the past year.

Gains in the job market, as well as lower gas prices, were also cited as reasons for economic growth in recent months. Data indicated that there was a $9.4 billion increase in the amount of non-revolving debt that Americans currently hold, and this was the lowest amount since September 2019.

Individuals who are having trouble paying down credit card debt may have many options to regain control of their finances. One option may be to file for bankruptcy. By filing for bankruptcy, an individual may be able to have credit card or other unsecured debts discharged without paying anything to creditors. It may also be possible to reorganize existing debts and repay them over a period of three or five years.

A reorganization bankruptcy may be ideal for those who want to retain ownership of a home, car or other secured asset. It may also be ideal for those who want the bankruptcy to fall off of their credit report in seven years instead of after a decade. Regardless of the type of proceeding a person pursues, it can be possible to obtain an automatic stay of creditor contact. A legal representative may talk more about other potential benefits to filing for bankruptcy.

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