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Younger people being more responsible with credit cards

Overall, Americans have $779 billion in credit card debt, which may make it seem like people haven’t learned the lessons of the Great Recession. However, there are some signs that millennials in Florida and elsewhere are actually doing a better job of managing their credit card debt. Currently, the credit utilization rate is 23 percent, which means that there is less reliance on credit and that people may be doing a better job sticking to their budget.

Another positive sign is the drop in 90-day delinquency rate. If borrowers are delinquent, it means that they may have borrowed more than they can afford to repay. The current rate is about half of what it was during the 2008 financial crisis. Those who study the issue believe that the credit card delinquency rate is unlikely to drop to zero because of how many people use credit cards.

Those who are seeking debt relief may benefit by filing for bankruptcy. In some cases, debts may be discharged without the need to pay anything to creditors. In a Chapter 13 bankruptcy, debts are reorganized and repaid over a period of three or five years. During the repayment period, creditors are typically unable to move forward on a repossession or a foreclosure.

This stay may make it possible for debtors to renegotiate the terms of a secured loan to avoid having their property seized. If an individual still has an outstanding credit card debt balance or another unsecured debt balance at the end of the payment period, it may be discharged. When a debt is discharged, a debtor generally has no further obligation to pay a creditor. An lawyer may be able to talk more about what type of bankruptcy may be most appropriate.

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