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Credit card debt on the rise

One good thing that came out of the Great Recession was a decline in credit card debt. People in Tennessee and across the nation reacted to the downturn by downsizing their credit card debt. But with the difficulties of that time receding into the rear-view mirror, credit card debt is climbing again.

How high? According to a study from WalletHub, a personal-finance website, the average unpaid balance is a little south of $8,000. The increase can be thanked to a record second quarter in which Americans put almost $35 billion on their plastic.

Thanks in part to the record-setting second quarter, WalletHub predicts that outstanding credit card balances will once again rise over $1 trillion nationally. That total breaks down to an average of $8,500 per household.

Having that much credit card debt is a problem, especially for households that pay the minimum. These households can expect to pay significantly more than they expected when they swiped their cards. High interest rates will see to that.

But while the WalletHub survey notes that credit card debt is picking up, the website did not explain the reason for the jump. One reason that Tennesseans use their credit cards is to pay for business expenses. Another is to pay medical bills.

For whatever reason Tennesseans find themselves in credit card debt, one option for getting out of it is to file for bankruptcy. Doing so can force debt collectors to stop their harassment immediately while putting Tennesseans on the path back to firm fiscal footing. To learn more whether that option is right for them, Tennesseans may benefit from speaking with an experienced bankruptcy attorney.

Source: komonews.com, "Americans going deeper into credit card debt," Herb Weisbaum, Oct. 7, 2016

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
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