Report shows credit card debt rising across the US

March 26, 2013

Report shows credit card debt rising across the US

Earlier this year, the Federal Reserve Bank of New York issued a report regarding our collective debt as a nation. According to the report, in the third quarter of 2012, our overall debt in the U.S. fell by $74 billion. During the same period, though, the amount of credit card debt across the country actually increased by $2 billion.

According to TransUnion, a credit bureau, from July through September 2012, the average credit card holder in the United States had $4,996 in credit card debt. The credit bureau has predicted that the amount of credit card debt held by the average American will continue to rise throughout 2013 -- possibly reaching an average as high as $5,446 per credit card holder by the end of the year.

The reason for this increase has been partially explained by banks once again providing credit to those who have a greater chance of being unable to pay their debts. Consequently, TransUnion has also predicted that throughout 2013, more people will be in excess of 90 days overdue on their credit card bills. In some cases, when someone is faced with rising credit card bills, filing for bankruptcy can be a favorable alternative.

Some Americans will have credit card debt for life

In addition to the overall rising credit card debt across the country, a recent Ohio State study revealed that some younger Americans are likely to have credit card debt for the rest of their lives. The study examined credit card information from 1997 to 2009 for over 32,000 people between the ages of 18 and 85.

According to the study, people in their 20s and 30s tend to have more credit card debt and pay down the debt at a slower rate than older credit card holders. The Ohio State researchers found that people born between 1980 and 1984 are, on average:
-$5,700 more in credit card debt than those born between 1950 and 1954
-$8,200 more in credit card debt than those born between 1920 and 1924

In addition, researchers predict that the younger generation will continue to amass credit card debt until they are in their 70s.

Credit card debt can be discharged through bankruptcy

While these studies may seem overwhelming, it is important to understand that there are options available for people struggling under mounting credit card debt. Filing for Chapter 7 or Chapter 13 bankruptcy can provide much needed relief. Through bankruptcy proceedings, credit card debt can be discharged.

If you or a loved one is struggling to make ends meet, consulting with a skilled bankruptcy attorney will help put you on the path to financial stability.

Article provided by Law Office of Ronald D. Cummings
Visit us at www.bankruptcylawcenter.org