Law Office of Judith A. Descalso Law Office of Judith A. Descalso

Overall amount of American credit card debt drops since 2008

Most of our Escondido readers, like everyone else, can probably not even fathom an amount of money like $850 billion. But, according to those entities that monitor the nation's credit, that is the amount of credit card debt owed by American citizens as of the end of 2012 - and apparently that is a good thing.

According to reports, that $850 billion amount is down significantly from the highest amount recorded during the economic downturn of recent years. In 2008, American consumers reportedly owed around $1 trillion in credit card debt. The so-called experts seem to think that this reduction in accumulated credit card debt reflects a welcome change in the mindset of many Americans - save more, spend less and pay off debt.

While this change may be taking place in the grander scheme of things, there are still millions of Americans who are dealing with the poor economy day-in and day-out in the best way that they can. For some, that means an overreliance on credit cards just to pay for daily expenses. Almost everyone who finds themselves sliding the charge card and putting off an expenditure to another day has every intention of paying that debt back. But the reality is that sometimes the best laid plans simply cannot come to fruition.

For an Escondido resident struggling with a burdensome credit card debt, it probably feels like they owe $850 billion themselves. When there doesn't seem to be any way to pay the debts, or even make minimum payments on credit cards, consumers should know that filing for bankruptcy can provide an option for a fresh start that can begin the process of turning an individual or family's financial situation in the right direction.

Source: TheTimesWeekly.com, "Credit card debt drops to $850 billion," Charlene Crowell, Aug. 21, 2013