Record total for consumer debt
In June 2017, consumers in Florida and the rest of the United States increased the overall consumer credit total to a record $3.86 trillion. This is even as the category containing student and auto loans reported the least amount of gain in a year. The total amount of debt that was posted for the revolving debt category, which contained mainly credit card balances, was also a new high of $1.027 trillion.
According to the Federal Reserve, overall consumer credit in June 2017 grew by $12.4 billion, which is a drop from the $18.3 billion increase in May 2017. It is also not as much of an expansion that economist had projected.
Consumer spending makes up almost 70 percent of the economic activity in the country. The credit report is carefully studied to determine what consumer habits will be. Economic growth rose at a 2.6 percent annual rate from April through June 2017 due to the substantial consumer spending increase. Auto and student loans and other non-revolving debt increased by $8.3 billion, which is a drop from the $11.4 billion rise in May. It is also the smallest gain for the category since June 2016, which saw a $7 billion increase. In the revolving debt category, there was a $4.1 billion gain in June 2017, a drop from the $6.9 billion increase that was reported for May 2017. In the fourth quarter of 2016, revolving debt had surpassed the $1 trillion mark, which had not occurred since the Great Recession.
Individuals who have substantial debt and a steady source of income may be eligible for Chapter 13 bankruptcy. This entails restructuring obligations and repaying them over a period of three or five years pursuant to a court-approved plan. An lawyer can provide more details on the process.