Credit Card Debt to Increase in the US for 2017
Just like millions of others in the US today, you may already have used your credit card to make a purchase today. Perhaps you filled up on gas or picked up a prescription. You may have bought lunch, a new outfit for work, groceries for the next few days—or maybe you even booked a trip online. A wide range of credit cards are available to fit consumer needs today, often offering more perks and rewards that we can ever make use of, or even know how to (see our recent blog on credit card options). Many users are quite savvy though, taking advantage of rewards and points, truly putting them to work for themselves, and following through by paying off their bills promptly each month.
For many other consumers, however, despite all the best intentions, that credit card that arrived in the mail not too long ago may already be quickly reaching its limit. Now, there may be other financial priorities, leaving you unwilling to pay off the entire balance. An unexpected life event may have also occurred such as an illness or loss of income, leaving you just enough to cough up minimum payments—or in worse cases, nothing at all. Late fees may pile up, and before you know it, one or more debt collectors are hounding you for payments.
While there are borrowers and card-users out there who are fortunate enough to be debt-free, today the average household has nearly $16,748 in debt. A recent Wall Street Journal podcast indicates that the US may see record numbers in credit-card debt for 2017, continuing a trend analysts have seen over the past few years.
“Last year, US consumers racked up almost $90 billion in credit card debt that’s new credit debt just during 2016, so that pushed outstanding balances to almost $980 billion. That’s just $3 billion below the all-time record set in 2007, so we have definitely turned back to our pre-recession habits,” says Jill Gonzalez, analyst for WalletHub.
“This is scary,” says Gonzalez. “Outstanding balances are growing, so yes, people are spending, but they spending more than they can take on—more than they can afford.”
Gonzalez expresses concern that with so much credit extended but not paid back, creditors will begin to tighten up, adding restrictions that will make it more difficult for newer consumers, especially.
Getting more credit may not be your concern currently if you are already struggling with repaying the debt you have. If you are concerned about debt collectors, credit card lawsuits, impending bankruptcy, or other related topics, contact us at Fitzgerald & Campbell, APLC so that one of our experienced attorneys can go over your questions and then discuss options. We are here to help!
Call us today for a free consultation at (855) 709-5788, or email us at firstname.lastname@example.org.
Posted in: Credit Card Debt