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Credit Card Delinquency Up Again

Posted on in Bankruptcy Attorney

The road to bankruptcy can be lined with persistent creditors, harassing phone calls, and enough daily annoyance to make a person crazy. Credit card debt is one of the main reasons cited for bankruptcy for Americans, and many in debt negotiate with debt settlement programs. Yet according to the Federal Trade Commission, “a debt settlement company may claim it can arrange for you to pay off the debt for less… but there is no guarantee that the services debt settlement companies offer are legitimate.” According to CreditCards.com, the average credit card debt per household with credit card debt was a whopping $15,956, and there were 609.8 million credit card held by U.S. consumers.

The average amount of credit card debt declined slightly after the economic recession in 2008, but recent reports state that Americans incurred more debt in the third quarter of 2012 than the rest of the year. According to USA Today, “Americans cranked up their use of credit cards… racking up more debt than a year ago, while also being less diligent about making payment on time, an analysis of consumer-credit data shows.”

This bad news comes only as a result of slightly better news—presumably credit card debt has increased on par with consumer confidence. According to USA Today, “consumer confidence increased steadily between July and September, as hiring improved, particularly in August and September. Employers added 171,000 jobs in October.” Perhaps the confidence has rubbed off on credit card lenders as well—“banks have become more open to issuing credit cards to higher-risk borrowers due to tight competition.” And despite the spike in consumer delinquency, rates of delinquency are much lower than they were a couple of years ago.

If you or someone you know is considering bankruptcy because of credit card debt, or any other reason, don't go through it alone. Contact a dedicated Chicago-area bankruptcy attorney today.

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