Credit card debt is a reality for most Americans and Alabama residents are no exception. Credit card debt can accumulate for a variety of reasons and can accumulate quickly. Since the current economic crisis began, many individuals began to pay down their credit card debt. Current market research indicates the trend of paying down credit card debt may reverse.
Individuals can accumulate debt in several ways and the most common include credit card debt, mortgages and auto loan debt. Individuals in Alabama that have similar types of debt are not alone. Reports indicate that if the U.S. debt load was averaged nation-wide across households, each household would owe approximately $96,000 in debt.
The economic situation has led to lower credit card debt, which partly due to lenders making credit less available and more expensive. As the economy changes, the terms in which lenders will provide credit is predicted to expand and make credit more accessible. The increased accessibility of credit creates the possibility for additional credit card debt.
Although there are many avenues available to incur debt, credit card debt can be an avenue with harsher repercussions. Credit card debt can come at a high cost. For example, if a credit card holder misses a payment or has a delinquent account, the credit card issuer may increase their rate up to 33%. Credit cards can also have a harsh impact on individuals that have a low credit score or a small amount of credit history. An experienced attorney can help an individual assess their current credit card debt situation and devise a plan to combat the overwhelming debt.
Source: The Wall Street Journal, "Consumer debt seen rising-again," Anna Andrianova, July 24, 2012