Growth of problems in credit card debt market
Many Florida residents find themselves in need of a fresh financial start regardless of the broader economic climate. So far in 2017, consumer access to credit has continued expanding, and there have been further increases in credit limits for the most responsible borrowers. Despite some observers suggesting these developments point to a strong labor market and increased productive activity, a growing number of consumers appear to be using credit card debt to put off financial troubles.
One piece of evidence for this trend is the delinquency rate. When consumers are delinquent on credit card debt, they can face a drop in their credit score. The delinquency rate was 1.5 percent during the first quarter of 2016. By the first quarter of 2017, it had risen to 1.69 percent.
Another piece of evidence is the growth in the subprime credit market. Transunion stated that this segment was the fastest growing and the primary source of growth in delinquencies. These consumers may be the most likely to use credit card debt to deal with financial problems. This group could end up turning to filing for bankruptcy more and more should there be further increases in the delinquency rate.
Most Miami residents who need debt relief are already delinquent or close to it on several types of debt, such as medical, credit card and mortgage payments. They may need consumer bankruptcy to protect their cars from repossession, stop foreclosure on a family home and receive a manageable payment plan that ends in a fresh financial start. An lawyer might be able to help clients organize their finances and gain a fresh start.