The Huggins Law Firm, PA
Call to Schedule a Free Consultation
Columbia 803-764-1558 Charleston 843-509-0039

August 2015 Archives

Debt often comes with a divorce

South Carolina residents who have never had debt problems before could suddenly find themselves facing trouble when going through a divorce. If one partner does not work or makes less money, paying for fees associated with dissolving a marriage and living expenses when down one salary can be difficult. This is why one could start incurring serious credit card debt.

Eliminating credit card debt in South Carolina

According to the Federal Reserve Bank of New York, credit card debt rose to $700 billion last year, and as of June, total revolving debt reached $906.5 billion. A slow but steady increase in the amount of debt indicates that people are using credit cards without paying them off more frequently, although the percentage of American households with outstanding credit card debt dropped by 10 percentage points from June of 2009, when it was at 44 percent.

The increasing risk of credit card debt

South Carolina residents may reflect the national trend of carrying increasing balances on their credit cards, which could create financial challenges if the Federal Reserve raises interest rates in the coming months. Experts anticipate an increase of 0.25 percent in September, which would cause existing credit card balances to become more expensive. It is believed that a 1 percent increase would cost debtors across the country a cumulative $9 billion extra each year, averaging approximately $160 per household.

Credit card practices to avoid

South Carolina residents likely know that credit cards are handy, especially for emergencies, but usage may become excessive and be difficult to pay off. Learning some of the pitfalls of using credit cards might help avoid problems in the future.

The impact of interest rates on bankruptcy

It is likely that many South Carolina residents filed for personal bankruptcy in the wake of the 2008 financial crisis. Official figures reveal that the number of bankruptcy filing shot up by almost 30 percent in 2008 and by 35 percent in 2009 before peaking in 2010. Efforts to stimulate the economy out of recession included keeping interest rates at near historic lows, and the number of personal bankruptcy filings has been going down in recent years.

The Huggins Law Firm, PA

Columbia Office
1812 Lincoln Street
Suite 201
Columbia, SC 29201

Phone: 803-764-1558
Fax: 803-764-1563
Columbia Bankruptcy Office

Columbia Office

Charleston Office
925-D Wappoo Road
Charleston, SC 29407

Phone: 843-509-0039
Fax: 866-481-2325
Map & Directions

Charleston Office