As many employers laid off workers and people in Oregon found themselves without jobs, many consumers turned to credit card to help pay the bills and provide food for their family members. Many of these people found how difficult it could be to wipe out credit card debt with a job that paid less and offered fewer hours. As people rely more on credit cards, they face overwhelming debts and an uncertain financial future, and it may seem that there is nowhere to turn when the creditors come calling.
It may be due to dropping unemployment rates and an increase in the stock market that late credit card payments were down in the first three months of this year. Although late payments are still high historically, it may be a sign that consumers are increasingly confident about the economic future of the country.
Late payments are still high historically, and one credit reporting agency has reported that credit card debt will rise throughout the rest of the year to hit a four-year high. Percentages are found using a sample of 27 million records of consumer spending and payments. Delinquency rates are lower despite several tax rates being raised at the beginning of the year.
Even consumers who are able to pay more on their credit cards may find that they cannot get ahead in their debts. Bankruptcy may offer a fresh financial start to those who are overwhelmed by debts and concerned about being harassed by creditors. Bankruptcy allows for credit card debt to be managed and minimized for those who can’t pay.
Source: Source: The Oregonian, “American improve credit card debt payments,” Americans improve credit card debt payments,” May 21, 2013