Establishing good credit is an important part of living independently in this country. As many people in Wisconsin know, a good credit score can help you obtain loans, maintain good insurance rates and be approved to rent a home or apartment.
Building good credit, of course, requires the use of a credit card. Relying too heavily on a credit card, however, can lead to substantial debt that may end up hurting you in the long-run. According to a recent article, people across the country are struggling to maintain manageable credit card debt.
In 2014, the total credit card debt among U.S. cardholders increased by more than $57 billion. Observers at CardHub predict that this trend of increasing credit card debt will continue through 2015.
The total credit card debt in the U.S. has climbed each quarter for the last six quarters. As of right now, the average credit card debt for an American household is $7,100. According to analysts, $8,300 is when credit card debt becomes dangerous.
The reason behind credit card use varies from household to household. While some may be feeling confident in their spending ability, others may have suffered a serious injury that led to costly medical bills. Either situation can lead to overwhelming debt that is impossible to get rid of.
If you ever find yourself in a situation where your credit card debt is too much to handle, it may be wise to speak with an experienced bankruptcy attorney. The right lawyer can help you understand your options and determine whether bankruptcy or another form of debt relief makes sense for you.
Source: New York Post, “Personal credit debt nears ‘unsustainable level’,” Gregory Bresiger, March 29, 2015