Most of our Escondido readers have heard many of the news reports that student loan debt is reaching an incredibly high overall amount from borrowers in America, and is becoming quite a burden. But credit card debt is rising too in San Diego and the United States. And that has some professionals asking, just how high could credit card debt in America get and what does it mean for the nation's economy?
Many people may remember that during the so-called "Great Recession" many people clamped down on their financial resources during troubled economic times, focusing not on acquiring consumer goods but instead on paying down debt and making sure that their own finances were in order. Now that the economy has rebounded somewhat, it appears that consumers are once again resuming their willingness to use credit cards to purchase goods and pay for services.
The main concern with the rising level of credit card debt appears to be that as the level rises the American people's income has remained stagnant. If debt is increasing even though people aren't earning more, it could become a nationwide problem. Hopefully a range of economic indicators will give us all a heads up if deeper concerns arise from this rising debt issue.
For those Escondido residents who have found that their own credit card debt level has risen too sharply, outpacing their income, filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy may be an option. Bankruptcy is a means by which consumers can face their financial challenges, address debt concerns and hopefully come out the other side in a better position with their finances.
Source: CNBC, "US credit card debt balloons to $917B: What it means," Fred Imbert, March 10, 2016