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What to know about credit card debt

Illinois residents and others across America have seen their annual credit card debt levels increase since 2015. That year, Americans accrued $43 billion in debt while that number rose to $87 billion and $92.2 billion in 2017. Overall, the Federal Reserve says Americans have more than $1 trillion in outstanding credit card debt. The $92.2 billion accrued in 2017 was the highest total seen since 2007, which was just before the Great Recession.

One reason why credit card debt levels may be increasing is because of looser lending standards. This may be because of the historically low charge-off rates. However, the increased amount of credit card debt has also lead to an increase in the delinquency rate to 7.5 percent from 7 percent in 2016. While not as high as the 15 percent rate seen during the Great Recession, it is still worth paying attention to.

In the last quarter of 2017, the average American household had a credit card debt of $8,600 compared to $8,131 during the last quarter of 2016. The total amount of credit card debt increased to over $1 trillion in the last quarter of 2017 compared to just over $950 billion in the last quarter of 2016.

Those who are looking to eliminate debt may be able to do so by filing for bankruptcy. By filing for bankruptcy, it may be possible to obtain an automatic stay against credit contact and credit collection activities. This may put a stop to a foreclosure or repossession. It may also provide time to renegotiate the terms of a secured loan to help debtors get current on their obligations to creditors.

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Schlueter Ecklund & Davitt
4023 Charles Street
Rockford, IL 61108

Toll Free: 800-207-5133
Phone: 815-516-8264
Fax: 815-229-0733
Rockford Office Location