According to data from the Federal Reserve, consumers across the country are feeling increasingly confident in their financial standings. Credit card debt increased by more than ever in the last year from April to May. Consumers added $6.6 billion to bring the total national credit card debt to $856.5 billion.
Interestingly, the number of people who are delinquent on their credit card payments declined. In order to be considered delinquent, an individual must be more than 30 days late on a payment. As of May, only 2.41 percent of credit card holders were delinquent — less than half the number of delinquent card holders five years ago.
Although we have good economic conditions for credit card use right now, there is no doubt it will change eventually. As the economy fluctuates, so does Kentucky residents’ ability to make regular credit card payments. We have all found ourselves in a difficult financial spot at one time or another that forces us to have to use our credit card more than we can afford to. While often we can manage the debt back down over time, when a person incurs several major expenses at once, it can be difficult to dig yourself out of debt.
When credit card debt becomes too much to handle, it is important for Kentucky residents to know that there are ways to find relief. For many people, filing for bankruptcy provides an opportunity to get rid of credit card debt and start over with a clean slate.
Source: Forbes, “Credit Card Debt Soars, Yet Delinquencies Fall,” Bill Hardekopf, July 11, 2013