Law Office of Ruth Nelson - Seattle Bankruptcy Attorney
Law Office of Ruth Nelson
What Can Bankruptcy Do For Me?
What Can Bankruptcy Do For Me?

Will consumer debt reach 4 trillion before 2019?

On Behalf of | Sep 21, 2018 | Credit Card Debt

If you are currently dealing with high levels of credit-card debt, you are certainly not alone. Consumer debt levels in the United States have been growing steadily since 2012 and, before we reach 2019, those debt levels are expected to reach new heights.

Some analysts estimate that individuals in America spend approximately 10 percent of their monthly incomes paying debts related to automotive loans, student loans, credit cards and home mortgages.

In fact, Americans owe an average of 7 percent more in credit-card debt and automotive loans each year. Even though this is a debt growth trend that has been present for the last six years, in most cases, American consumers are able to manage their debt levels. Credit card delinquency rates are low at 2.4 percent.

That being said, even though consumers who are paying 10 percent or more of the monthly income on credit-card debt may be able to manage this, it is not the safest place to be debt wise. If a life calamity presents itself, this debt could quickly spin out of control. Therefore, consumers may want to review their high-interest credit-card debt to determine if there are other credit-card debt resolution strategies they can employ to lower their interest rates on this debt and pay it off quickly and effectively.

Finally, consumers who absolutely can’t stay on top of their debt levels may want to consider more powerful ways to rescue themselves from the “debt spiral.” In many cases, bankruptcy can offer just the financial lifeline that borrowers need to bring their monetary affairs back into order.

Contact Form

Contact Information

Law Office of Ruth Nelson
7742 14th Avenue NW
Seattle, WA 98117
Map and Directions