When the economy improves, consumer confidence increases, and people begin to charge more on credit cards. In 2007, people were also overconfident with their money, causing to them to take risks with their long-term financial stability by carrying huge credit card balances. Analysts warn that this is happening again, which could potentially increase the need for many Americans to consider consumer bankruptcy.
Maryland readers may be interested to know that Americans accumulated an estimated $34.4 billion in credit card debt in the second quarter of 2016 alone. Financial experts point to this as a major sign of concern for the future financial health of many families and the country as a whole. Recent investigation also found that there was a minimal amount paid toward these debts, which is also a discouraging sign.
As interest rates eventually climb, people may be caught off guard by the increase in their payments and how slowly they are able to pay off balances. When people are unable to effectively manage their credit card debt, bankruptcy may be a viable option. While it cannot eliminate all financial problems, it can help a person discharge his or her debt and move forward toward a stable financial future.
When Maryland residents find themselves with more debt than they can manage, they would be wise to explore the legal options available. Consumer bankruptcy can provide relief from creditors and provide peace of mind as debts are dealt with effectively and in an organized manner. Any individual considering this legal step would be wise to seek a case evaluation with an experienced bankruptcy attorney.
Source: time.com, "Uh-Oh, We're Racking Up Credit Card Debt Like It's 2007 Again", Martha C. White, Sept. 14, 2016