For many of our Escondido readers who turn on the evening news, many will note that there are regular reports regarding the current health of the national economy. To hear the news reports tell it, the economy is as healthy as it ever was, with the stock market soaring and the job market continuing to recover. However, for many people there is one economic issue that they still see every time they open their mailboxes or answer their telephones: debt.
According to a recent report, debt remains a consistent thorn in the sides of millions of Americans. In fact, the report indicates that debt levels on a per-household basis have actually been rising since 2013. It is estimated that a staggering 80 percent of Americans have some form of debt to deal with.
For most people, the biggest debt concern is probably credit card debt. Unlike mortgages, car loans or even student loans, credit card debt can grow and grow, with the likelihood of being able to repay the debt in full diminishing with every minimum monthly payment that is made. On top of that, the interest rates that are associated with most credit cards are significantly higher than many other types of debt.
Credit card companies want Americans to charge purchases, earn an income and pay their monthly payments. But, these companies don't make this such an easy task with such high interest rates. For some people, the best option may be filing for bankruptcy in order to wipe the debt out completely.
Source: usnews.com, "Despite Improvement, Debt Shadow Still Looms Over Many in U.S.," Andrew Soergel, July 12, 2016