A May report from CreditCards.com revealed that roughly 120 million Americans have credit card debt. That figure represents about 47% of adults in the United States, and the number of people who have credit card debt in Michigan and throughout the country has increased 4% since early March. According to the 2019 Wealth Report issued by Schwab, only 39% of those between the ages of 23 and 38 have an emergency fund that could last three months.
Researchers attribute a lack of savings among this age group to wages that haven’t risen much over the past 50 years after accounting for inflation. However, during that same time period, housing and other costs have increased dramatically. Furthermore, those who are in their 30s may still be trying to recover from the economic downturn that occurred in 2008. Those who are carrying credit card balances may have a number of options available to reduce or eliminate them.
Individuals who took part in the CreditCards.com survey said that they used a variety of tactics such as paying more than the minimum due and using balance transfers. Individuals may also be able to find lenders willing to offer personal loans as a tool to consolidate credit card balances at a lower interest rate. Debtors who are struggling to pay their balances are encouraged to reach out to their creditors.
Individuals who need relief from credit card debt may be able to obtain it by filing for bankruptcy. It may be possible to have balances eliminated in a matter of weeks or months in a Chapter 7 proceeding. Those who don’t qualify for a liquidation bankruptcy may still be able to reorganize their finances by filing for Chapter 13 protection. Attorneys may help debtors learn more about their debt relief options.