Once again, Americans are being saddled with credit card debt
In the wake of the 2008 crash of Wall Street and the American banking system, many consumers across Florida lost their jobs, their home equity and their ability to pay their credit card bills. For many Americans, the Great Recession left them with piles of unsecured debt and the grim prospect of facing repossessions, wage garnishment orders and ruined credit profiles.
Economic conditions began to improve in 2012; since then, millions of credit records have been repaired, and Americans are once again being encouraged to apply for credit cards, loans and mortgages. A recent survey conducted by investment banking firm Goldman Sachs shows that debt levels are once again on the rise across the United States with the average household debt calculated at $5,700. Individuals between the ages of 30 to 50 are carrying credit card balances as high as $9,000.
The Goldman Sachs survey revealed that nearly 40 percent of Americans have very good credit scores despite their high balances, and the main reason for this trend is that credit lines have been boosted considerably. A consumer may feel suffocated under the weight of owing thousands of dollars in credit card debt, but if the person owes $6,000 on a $20,000 line of credit, the scoring model would be in their favor.
Should there be a macroeconomic correction in 2017, some Americans may turn to bankruptcy lawyers for the purpose of filing a Chapter 13 wage-earner plan. Also known as a consumer bankruptcy, a Chapter 13 filing is an option that may help stop debt-related lawsuits and establish a manageable payment plan to lead to a fresh financial start regardless of credit score.