Credit card debt can lead to serious financial struggles for consumers in Wisconsin and throughout the country. Credit card debt levels have declined in the last few years due to the Great Recession, but the improving economy has led to a comeback in consumers taking on more debt.
A new survey by CardHub reports that credit card debt has increased by 47 percent in the last year. This is a significant increase, and one that is expected to continue to grow by at least five percent in 2015.
The CEO of CardHub said that even though the economy is improving, the increase in credit card debt shows that consumers have not changed their attitude when it comes to credit card debt.
The company reported that defaults on credit card payments are lower than they have been in the past, the average household’s credit card balance is increasing and could become unsustainable if it continues to grow.
Credit card debt is one of the leading causes of bankruptcy. Individuals who cannot afford to pay off their credit card balance each month are subject to paying high interest fees on top of the debt they already owe. This can lead to a serious financial burden that can spiral into unending debt for some consumers.
Individuals struggling with unbearable credit card debt may be eligible to file for Chapter 7 or Chapter 13 bankruptcy. Bankruptcy can result in your debt being discharged or paid back on a specific schedule. However, there are strict bankruptcy eligibility requirements that need to be met. Individuals thinking about filing for bankruptcy should work with an attorney to discuss their specific situation.