Free Case Evaluation

 
 
X Close
Phone Call Us 414-326-9231
608-260-7133
Toll Free 866-678-9352
Text Us 414-277-7742
You can also feel free to text us at 414-277-7742 to set up your FREE appointment with our attorneys today

Why credit card debt is expected to rise in coming years

The personal finance website NerdWallet.com recently featured a very informative report on American Household Credit Debt Statistics.

Ultimately, the report indicated that average credit card debt for American families peaked in January 2009 -- at the height of the economic crisis -- and then did something peculiar: it dropped.

By the middle of 2010, average credit card debt dipped lower than it had been in years, but it wasn’t because Americans had paid off their credit card debt, NerdWallet.com explained. 

Instead, credit card companies began to write off serious delinquent debts in earnest, which resulted in less credit card debt overall.

Then, in 2011, average debt leveled out, largely because credit card companies became more selective in approving credit. Instead of offering everyone a credit card, they tightened their standards and began to only approve consumers who they felt confident would pay them back.

However, as the economy slowly but steadily improves, NerdWallet.com believes that credit card companies will once again begin loosening their lending standards, thereby increasing the total amount of revolving debt.

In other words, NerdWallet.com suspects that the average credit card debt for American households will increase in coming years. For example, NerdWallet.com shared data showing that average household credit card debt increased by 2.36 percent from August 2013 to August 2014.

As credit card companies begin to offer credit to consumers more liberally, more Americans are going to find themselves in over their heads with debt they can’t afford to pay back.

When this happens, consumers can benefit from speaking with an experienced bankruptcy attorney who can help guide them back to financial safety.

Of course, consumers should take steps to help prevent this from happening whenever possible. Our next post will discuss several tips for avoiding credit card debt in the first place.

Source: nerdwallet.com, "American Household Credit Card Debt Statistics: 2014," Tim Chen, Nov. 2014

No Comments

Leave a comment
Comment Information

Contact Our Milwaukee Law Firm

Reach Miller & Miller Law, LLC, online or call us at 414-326-9231 to schedule a free initial consultation. Our law office also provides Spanish language services. Se habla español.

To schedule an initial consultation, call 414-326-9231 or contact Miller & Miller today.

Free Case Evaluation

* indicates required field

 
 

Milwaukee Office
633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Law Office Map

Kenosha Office
6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Law Office Map

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Law Office Map

Madison Office
2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Law Office Map