There are many different indicators that economists keep track of to measure the so-called “health” of the national economy. Credit card debt is one such indicator. And, according to a recent report, the overall amount of credit card debt in America has topped $1 trillion for the first time in almost 10 years. But, is this a good thing or a bad thing?
For the most part, it seems that the rise in credit card debt is actually a good indicator of a healthy economy. It means that consumers are feeling more secure in taking on debt burdens, probably because they are feeling more secure in their jobs and their ability to earn an income. However, sometimes debt of any kind, as noted in the recent article, can be considered a “ticking time-bomb.”
Why should we be concerned about the rapid rise of credit card debt in America? Well, mostly because credit card debt is just one form of debt that Americans deal with on a daily basis. Most people also have mortgage debt, auto loan debt and student loan debt. Add that all up, and the average household probably has several thousand dollars of debt to address.
For some people in New York, their debt burden is simply too high. For the people who find themselves in this type of situation, filing for bankruptcy could be a good debt solution. Bankruptcy is a tool for consumers to use to get out from under their financial challenges to find a new financial fresh start. An experienced bankruptcy attorney can help people in New York understand their legal options when it comes to getting out from under insurmountable debt.
Source: 10tv.com, “Credit card debt hits $1 trillion as economy expands,” April 8, 2017