Nobody likes having credit card debt to pay off, but most Americans have some form of credit card debt or another, and it usually has a very high interest rate attached to it. The high-interest rates and other fees associated with most credit cards are particularly frightening for consumers, but there are some other lesser-known — but equally frightening — facts that consumers should know about, too.
For example, did you know that there’s too much credit card debt right now? At this time, U.S. consumers owe a whopping $953.3 billion in credit card debt. According to the Federal Reserve, the debt could skyrocket to $1 trillion before the end of 2016.
Credit card debt is growing nationally, not shrinking. In fact, we’re borrowing more than we’re paying off. In 2016’s first quarter, U.S. consumers paid off $26.8 billion of their credit card debt. This is an embarrassing 38 percent of the amount of debt Americans accrued.
It can take a very long time to pay off credit card debt. A $6,000 debt could take about 12 years to pay off if only the minimum balance is paid each month. What that means is that consumers need to focus on paying off as much of their debt as they possibly can each month.
Kentucky residents in credit card debt trouble will have various options available that can help them get out of their debt situation. Those options could include bankruptcy proceedings and other solutions. By discussing their debt situations with a qualified bankruptcy attorney, Kentucky residents can review their options and discover the most appropriate solution to suit their needs.
Source: WiseBread, “6 Scary Facts About Credit Card Debt,” Dan Rafter, Sep. 21, 2016