In the end of last year, credit card debt hit a new high; according to data released by the New York Fed, US household debt had grown to a record $13 trillion, and credit card balances grew by $24 billion. And so far, according to recent reports, those numbers could get even worse in 2018.
More specifically, consumer debt — which has been growing steadily since 2012 — is set to break new records by the end of the year. According to recent analysis from LendingTree, consumer debt could reach $4 trillion by this December.
Alarming statistics on consumer debt
Here are more alarming facts from the study that I want to highlight for you as a Memphis bankruptcy lawyer:
– Americans owe more than 26% of their annual income to consumer debt, up from 22% in 2010.
– Debts on auto loans and credit cards are climbing by more than 7% annually.
As I’ve mentioned before, the burden of debt is expected to worsen, with the Federal Reserve set to raise interest rates. There’s never a good time to be in debt, but believe me, you don’t want to be holding a lot of debt when interest rates rise — you’ll be spending more to pay off your debts, and it will cost more to borrow money or refinance.
I often remind people that debt can happen to anyone, and as these recent trends go to show, it can happen to many Americans. If you’re drowning in debt, you are not alone. But you also have options and a way out. Chapter 7 bankruptcy allows you to get rid of credit card debt without paying it back.
Contact a Memphis bankruptcy lawyer today
A good bankruptcy lawyer can help you get out of debt, improve your credit score, and get a fresh start. Throughout the past 30 years, as a Memphis bankruptcy lawyer, I’ve helped thousands of people get out of debt and turn their lives around. I can do the same for you.
If you have questions or concerns, we are happy to sit down and discuss your options at no cost. Contact us here or call (901) 327-2100 to get started today.