Credit card debt piling up again for many Americans

After the holidays, it's not unusual to have some extra credit card debt. However, for some residents of Southaven credit card debt is becoming more than just a seasonal obligation. According to some new reports, Americans' credit card debt appears to be on the rise again after years of recession-era frugality.

Two recent reports from the financial website WalletHub indicate a return to willingness to take on credit card debt. Per one report, last year credit card debt rose by nearly $70 billion, with a total of around $900 billion. Interestingly, this is the highest amount of credit card debt reported since the recession which began nearly a decade ago. The average American household now has owes about $8,000 to creditors.

For some households, finding a way to repay creditors is manageable. For other families and individuals, their credit card debt may be a result of coping with job loss, medical needs or other unexpected life changes. As a result, they may find it understandably harder to pay back creditors. Unfortunately, credit card debt is notorious for rising rapidly when one can only make minimum payments or hasn't made payments at all. There are serious financial penalties for missed or late payments, even when one's financial situation is the fault of a still-recovering local economy.

Personal bankruptcy is one method of effectively addressing out-of-control credit card and other debts. If other options have failed, Chapter 7 or Chapter 13 bankruptcy can comprehensively tackle a debtor's financial situation in a manner that brings about resolution. For more information on the advantages of either Chapter 7 or Chapter 13 bankruptcy, a local bankruptcy law firm can provide sound legal advice and help in the midst of rising debt.

Source: The Blade, "U.S. credit-card debt surging across nation," Tyrel Linkhorn, Jan. 21, 2016

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