People in Michigan can find themselves facing overwhelming debt for many reasons. Common causes include job loss, medical expenses and personal problems. However, one of the most prevalent culprits behind debt issues is credit cards. Credit card debt can cause worry and fear, especially when the debtor falls behind. Fortunately, there are legal options like bankruptcy to get back on stronger financial footing.

According to the Federal Reserve, credit card borrowing this past December reached more than $22 billion, the greatest rise in over 20 years. This was almost twice what it had been in November, and it was the largest increase since July. Credit cards were in the category with the highest surge at $12.6 billion.

There has not been that large an increase in credit card debt since April 1998 when it rose by $19.5 billion. Credit card borrowing had decreased by nearly $3 billion in November. This was a positive sign for retailers as it indicated that sales were strong. Other areas in which borrowing increased included student loans and auto loans at $9.4 billion. Consumer credit reached $1.1 trillion, which is a record high.

These numbers might benefit the economy overall, but that does not necessarily mean it’s all positive for individuals. People who have high credit card balances and other debts might not know where to turn for relief. Creditors and debt collectors will repeatedly call and send letters about collecting what is owed. Bankruptcy is a viable option to help debtors clear debt. Depending on the situation, one may be able to use a Chapter 7 liquidation bankruptcy or by arranging a reasonable payment plan with a Chapter 13. To understand the alternatives and how to move forward, a law firm experienced in bankruptcy law/credit card debt may be able to help.