Americans are maxing out their credit cards once again
In the wake of the Wall Street crash of 2008, quite a few Florida residents were left jobless and saddled with considerable credit card debt. This was a critical moment in the global financial crisis as it signaled the beginning of the recession. Now, a report issued by the Federal Reserve Bank of New York suggests that credit card debt is once again reaching worrisome levels.
As of August 2017, the total consumer debt in the U.S. stood at $12.8 trillion. It is interesting to note that the current level of debt is even higher than in 2008, when it stood at $12.7 trillion. The bottom line is that Americans currently owe $784 billion to credit card companies, which is the highest it has been since the end of 2009, right at the time when millions of delinquent accounts were turning into defaults and being sent to collection agencies.
Market analysts and economists are concerned that Americans could see a reflash of the Great Recession if economic recovery slows down or if it starts heading in the opposite direction as the Trump administration continues to face challenges. It would only take a mild recession and an uptick of the unemployment rate for credit card debt to become problematic.
Floridians whose levels of consumer debt are becoming unmanageable may want to meet with a consumer bankruptcy lawyer to see what forms of debt relief might be available. The lawyer can outline the requirements of both Chapter 7 and Chapter 13 to see if either of those would be a good fit.