Why Is Credit Card Debt in Memphis Skyrocketing?

According to every major report, credit card debt across the country has risen to its highest in history. Memphis credit card debt is no exception.

These changes don’t just come out of nowhere. A number of causes, all happening at once, explain the problem – and it’s a real problem.

If you’re in credit card debt and don’t know how you’ll pay it down, you aren’t alone. Here’s what you need to know.

Rising Inflation

Over the last couple of years, inflation has creeped up and caused financial strain for millions of families. It peaked at around 9% in 2022, and you can still see its effects at the grocery store and gas station.

There’s no one cause for the inflation. Covid spending packages, supply chain issues, changes to the labor force, and the war in Ukraine impacted costs in the U.S. and around the world.

As a result, the average American family saw basic costs go up and up. The exact same budget would get you just a percentage of the same goods as a year earlier. When such basic needs as food and gas become so expensive, it’s no surprise people turned to credit cards to cover the costs.

Rising Interest Rates

Credit card debt and interest rates work hand in hand. And unfortunately for debtors, interest rates have recently gone up.

With higher interest rates, credit card charges go up by more and more each month. If you don’t pay off all of your debt at the end of your pay period, you’ll owe interest. And as the credit card debt goes up, the interest you owe goes up as well.

This leads to a real crisis for people who can’t pay off their debt in full. The rising interest rates can add so much to your bill that it spirals and you eventually realize you can’t possibly pay it all back.

When interest rates go up, it can also be harder to afford a home or car, which pushes families to cover their other costs on credit cards even more.

Low Unemployment But High Costs

Oddly enough, these numbers don’t seem to reflect a high unemployment rate. Sometimes when people can’t find work, we’ll see it reflected in credit card debt. But right now, employment is relatively high and the numbers still look terrible.

This just shows how badly the above issues are impacting the average American spender. We have jobs and still can’t afford what we need.

Memphis TN bankruptcy lawyer The Mental and Health Impact of Credit Card Debt

As credit card debt gets higher and higher, it has a huge impact on our lives.

It can cause physical stress reactions like high blood pressure and insomnia. In addition, it leads to higher rates of mental health problems and outbursts. And it can even put so much stress on families that couples consider divorce. We see it in our office every single day.

Perhaps most common is the sinking, nagging anxiety and depression that follow people with debt around like a weight.

Fortunately, you do have options. There are tools you can use to get rid of the debt and free yourself from its negative impacts.

stopping creditor harassmentGet Out of Memphis Credit Card Debt

If you have credit card debt you can’t pay, we can help.

Our attorneys work with people every day who feel totally out of control with their credit card debt. You definitely aren’t alone.

With Chapter 7 bankruptcy, you can actually get rid of credit card debt and get a totally fresh start. It’s designed by the courts to help you, so you don’t have to live with the pressure of this debt for the rest of your life.

Some people worry bankruptcy will hurt their futures or their credit scores, as though the deep debt they’re experiencing isn’t already doing that. In fact, you can have a great life free of debt – we even wrote a free report called Life After Bankruptcy to show you how.

You don’t need to live with the stress and frustration of credit card debt. Just call us today at 901-327-2100 or fill out the form below.

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