Filing for bankruptcy can help to alleviate insurmountable debt that a person may be suffering with. It’s a legal status, indicating to creditors that the individual who filed is unable to repay debts. For Americans, credit card debt is becoming a way of life.
In fact, ValuePenguin reported that in 2016, the average debt for a household in the U.S. is at the highest it’s been since 2010- a whopping $16,048. The total U.S. outstanding consumer debt reached an incredible $3.4 trillion.
With American credit card debt rising over the last ten years, one may suspect that there are more people holding credit cards than ever before. This is actually not the case. Though the overall percentage of people who hold a credit card is decreasing, these individual card holders are becoming more and more indebted to these credit card companies.
If you’re suffering with credit card debt, take a bit of comfort knowing that this is a growing epidemic. In 2016, over 38 percent of American households held some sort of credit card debt. Even though higher income households have a tendency to carry more debt, percentage wise, lower income households were found to carry the most debt burden.
In 2016, credit card debt is at a peak for those between the ages of 45- to 54-years-old. Falling closely behind are 35- to 44-year-olds. These groups have been shown to be the largest credit card users, however.
Tips for Managing Debt
Though it can be discouraging to try and manage a large amount of debt, these tips can help if you haven’t yet made it to the point of no return.
- Make the minimum payments, at the very least
- Make sure you are keeping track of these payment due dates
- Figure out who you owe and how much you owe them
- Determine who to pay off first (the most expensive debt)
- Create a monthly budget to plan any expenses
- Start building (or use) an emergency fund
- Work on improving your credit score
Filing for Bankruptcy
Bankruptcy may be a good option to address credit card debt that cannot be paid off. A reputable attorney can help to explore any options that are available to you, given your specific circumstances. Find a law office that has experience in helping those with credit card debt.