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Credit card usage increases in South Carolina

According to the Nilson Report, which is a credit card and mobile payment trade publication, credit card debt in the U.S. exceeded $1 trillion dollars as of the end of 2016. Increased household income and improved outlook on the economy are considered to be the reasons that borrowing has reached a level not seen since the Great Recession.

However, it's not just that which has led to this level of credit card use. Another factor in people's reliance on credit cards is that the cost of living has also steadily increased. Unfortunately, using credit cards is one of the most expensive ways to borrow, and the average credit card interest rate is over 19 percent.

As a result of high interest rates and levels of borrowing, the average household pays $1,332.80 in credit card interest. The total amount of debt owed in the country is close to what it was in 2007, when the Great Recession began. However, more of the debt owed is now more due to mortgages and student loans than in the past.

When people have an enormous amount of credit card debt, they will probably try a variety of methods to pay back what they owe. However, for many people, debt settlements and debt repayment plans do not work. If someone owes more than they can reasonably pay back, one option is to file for bankruptcy. Chapter 7 bankruptcy can discharge most unsecured debts, and Chapter 13 can allow people more time to pay back creditors. A lawyer could explain the specifics of each filing and assist clients in determining which is best based on their circumstances.

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The Huggins Law Firm, PA

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