Credit-card debt isn’t always a bad thing, but when it gets out of control, it’s hard to get your finances back in order. Credit cards have their place, and when the economy is good, people tend to use them more.
That may be why credit-card debt has hit its highest level since 2008 in America. According to a Jan. 9 report, revolving credit debt has reached $1.023 trillion, which is slightly more than it was in April 2008, prior to the recession.
The problem with credit-card debts isn’t that people have them. Instead, the problem lies in being unable to pay them off. The number of delinquencies has increased along with the total debt in America from 7 percent to 7.5 percent between 2016 and 2017. Prior to the financial crisis, delinquencies had hit 15 percent, a sign of bad things to come.
What is good news is that the current U.S. economy is improving. People are finding jobs more easily, and incomes are increasing as well. While that’s very positive for the time being, it could also pose a problem later if the economy again takes a dive.
Credit-card debt isn’t for everyone. While credit has its benefits, it also puts your finances at risk. If you’re struggling with debt, it’s okay to seek a way out. Your financial stability is what’s most important. There are options for paying down debt, including bankruptcy, consolidation loans and other options. With the right help, you can get your credit-card debt back under control and live with the financial freedom you deserve.
Source: Fortune, “Credit Card Debt Hits Highest Levels Since the 2008 Housing Crisis,” Chris Morris, Jan. 9, 2018