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Credit card delinquency rate falls, as to credit debt levels

A report from TransUnion indicates that the delinquency rate for U.S. credit card holders has fallen to the lowest level in two decades. They also report that total credit card debt has dropped more than 16 percent from the July 2008 high point, down to $2.7 billion. This appears to be an encouraging trend, in that people are maintaining lower credit balances and making their payments on time.

It may also show a recognition of the tepid economy, and that many residents in Kentucky and across the country have reigned in not just credit use, but all spending. Many people are still underemployed in jobs that pay less than they earned 10 years ago, or are struggling with reduced hours at jobs they managed to keep. For some, bankruptcy may still be an option, as they deal with homes that are worth less than their outstanding mortgage balance and oppressive credit card debt.

If you have restrained your spending to the necessities and your credit balances have barely budged, you may feel demoralized by the lack of progress. If your income simply does not allow making larger payments on your credit card balances, bankruptcy may be your best option.

While an attorney can discuss the specifics of your situation and explain how a bankruptcy filing could relieve you of your crushing debt burden, generally, a Chapter 13 can help you potentially prevent a foreclosure,  and keep your home and vehicle, while a Chapter 7 can be most helpful if you have few assets, but a great deal of debt.

Source: FoxBusiness.com, "Lesson Learned? More Americans Paying Credit Card Bills on Time," Kate Rodgers, August 13, 2013

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