Credit use climbs in Florida

A report from the Federal Reserve indicates that the total amount of consumer credit reached $15.2 billion in February 2017. This represents a growth rate of 4.8 percent, and it pushed total use of credit cards over $1 trillion. Revolving credit, which includes credit cards, grew at an annual rate of 3.5 percent.

This increase in revolving credit is a reversal from January, when there was a 3.2 percent drop in use. January marked the first decline in revolving credit since November of 2013 as well as the lowest increase in consumer credit since April of 2013. Some experts have speculated that the reduction in credit in January was a result of Americans’ desire to pay off bills from the holidays.

The rate of increase in non-revolving credit, which includes student loans and home loans, increased at a slightly slower rate from January to February. In February, there was a 5.3 percent increase in revolving credit compared to a 5.9 percent gain in January. Analysts say that the increased use of credit is due to the fact that consumers are in the best shape that they have been since 2008.

When someone has more debt than they can manage, one option is to file for chapter 13 bankruptcy. With a chapter 13 filing, people are given more time to pay back what they owe. After a three- to five-year period, debt may be eligible for discharge. If someone is interested in filing for bankruptcy, a lawyer could help them by explaining the difference between different bankruptcy filings.