Credit cards are relatively easy to get, and Maryland readers may know that many banks are currently lending to consumers at an alarmingly high rate. In a three month period, banking establishments lent $18 billion to consumers, much of it in the form of revolving credit such as retail store credit cards. While some may view this as a positive sign of the economy’s health, credit card debt can quickly add up and become a burden for consumers, increasing the number of people filing for consumer bankruptcy.
Financial experts have taken note of these numbers and have expressed concerns. For example, this year’s presidential race has been particularly vitriolic and has left many people with concerns over the long-term health of the economy. This could lead to trouble down the road for both the lenders and the consumers who hold significant amounts of debt.
According to the company that issues the highest amount of retail store credit cards, more and more consumers are beginning to miss payments. As payments are missed and interest begins to accumulate, many credit card holders may find themselves unable to effectively manage the amount of debt they carry. Soon, creditors begin calling and may make threats of collection actions against the cardholder.
When consumers find themselves unable to deal with the amount of credit card debt they have, it may seem like a hopeless situation. Fortunately, there are legal options available, including seeking protection in bankruptcy. If a Maryland individual would like to understand more about his or her options regarding the discharge of credit card debt, a case evaluation with a consumer bankruptcy attorney is recommended.
Source: marketplace.org, “Are consumers taking on too much credit card debt?”, Donna Tam, Aug. 1, 2016