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Credit card debt rate increases as economy strengthens

| Feb 24, 2014 | Credit Card Debt

As the national economy works to continue rebounding, Oregon residents also look to the state and local pictures for signs of ongoing improvement. During the recessionary years, many people throughout Oregon were hit hard by credit card debt, unemployment, medical expenses and more. Some people chose to file for bankruptcy, others worked with creditors to identify acceptable payback options. Still more struggled with delinquent payments and high interest charges. Ironically, credit card debit is associated with both financial challenges and a healthy economy.

An article that was published in the press recently indicated that the rate of consumer borrowing is on the rise. In 2008, Americans amassed a total of $3.1 trillion in debt on credit cards—a record high. By December 2013, that number had risen but remains almost 16 percent lower than the 2008 record level at close to $862 billion. The December figure represents the biggest increase since May of the same year and is almost two percent higher than what was recorded 12 months prior.

Student loans and automotive loans represent the biggest areas of increase for U.S. consumer debt, with a jump of $13.8 billion in December 2013 making it the biggest increase in those categories since February 2013. Borrowing and debt are considered signs that Americans are once again trusting in the economy.

Even with some good signs, challenges still abound for many people. If you are struggling to make ends meet, you may be able to get some help by talking to an attorney. Understanding your options to stop creditor harassment can help get you back on your financial feet.

Source: San Diego Union Tribune, “US consumers boost borrowing by $18.8B in December,” Martin Crutsinger, February 7, 2014

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The Law Office of Kim Covington is a debt relief agency, and I have helped families, individuals and small businesses, file for bankruptcy relief under the U.S. Bankruptcy Code, for over 19 years.