Millions of Americans are grappling with credit card debt. According to WalletHub, last year ended with a cumulative increase in this total combined debt in the tens of billions of dollars. There are plenty of circumstances that might lead to unpaid balances on your credit cards, and if you are currently struggling to deal with yours, the following four reasons might sound familiar. Identifying the underlying cause of credit card debt may help you start the path towards debt relief.
There are some indicators that the United States economy has stabilized and is now on the upswing, and one of them is that consumer credit debt levels have risen. While this can have a positive effect on a national scale, it can also be a sign that Americans still haven't learned their lessons regarding indebtedness.
Miami residents may wonder what the best debt-reduction strategy is to get yourself out of the red and into the black. The answer is that it depends a great deal on you and your motivations and goals. We'll discuss the two most popular methods.
Because filing for Chapter 13 bankruptcy allows Florida residents the chance to restructure the debt and make payments in an attempt to keep their property, there are very specific requirements that filers must meet. How much debt is owed and whether the person has the ability to make the payments to repay the debt are two of the most important factors.
Statistics provided by the Internal Revenue Service indicate that $3,317 is the average amount of refund for the American taxpayer in 2014.
It looks like Americans may not have cut up the plastic quite yet. While an analysis from CardHub showed that consumers paid down $32.6 billion in credit card debt in the first quarter of 2013, they added another $42.1 billion in the last quarter. This marked the biggest quarterly increase since 2011.
To many Florida residents, it might seem logical to use a windfall or inheritance to pay off or make a big dent in credit card debt that is racking up interest charges each month. Unexpected financial challenges can pop up at any moment, and doing the math makes paying off those balances seem attractive. However, it might be a better idea to refrain from throwing a large chunk of change at one's debt.
When someone files a Chapter 7 bankruptcy, the law states that they cannot re-file Chapter 7, or a discharge of almost all of their debts, for eight years. If an individual has amassed significant credit card debt during that eight-year period and then runs into financial problems again due to underemployment, unemployment or numerous medical expenses, they might consider filing Chapter 13 bankruptcy.
When it comes to personal bankruptcy, many people assume that it's caused by over-use of credit cards or expensive mortgages. However, statistics show that three out of five bankruptcy cases are filed due to overwhelming medical bills. Often, to keep from losing some types of real property, filers will enter into Chapter 13 bankruptcy. This topic may be of interest to Florida readers due to the lingering effects of the recession in the state.
It is no surprise that different generations have different ways of dealing with things. This is true whether it be regarding relationships or even money. According to a recent study, individuals who were born in the four year period beginning in 1980, like to use their credit cards more than other demographics. In some cases the difference is more than $8,000. The study was conducted utilizing information provided by Capitol One. It included information from a 12 year period beginning in 1997.