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Credit card debt in America is increasing, but delinquency is low

Consumer debt is on the rise, and this is good news for the credit card companies. It is estimated that the debt load from consumers increased $80 billion last year. One trend that is boosting this increase is online shopping. Consumers are turning away from paying cash to local businesses and leaning more toward making credit card purchases online.

Some people think that these individuals could just as easily use debit cards, but many of them don't want to have to deal with the security risk that comes with this. Instead, they enjoy the safety that comes with the credit cards because the protections are often better.

One good thing about the current situation is that the delinquency rate is low. This is thought to be due to the low unemployment rate and the stronger economy. Still, debt is debt, and some individuals don't realize that they are only one event away from being unable to pay those bills.

The interest rate is one thing that's rather troubling. It is an average of 17.3% now, which is almost a record high for people who have a good credit score. It is much higher, 25.3% for people who have lower credit scores.

The high interest rates make it difficult for consumers to pay them off, especially if they can't afford to pay the bill in full before the interest begins to accrue. For people who are only able to pay the minimum monthly payments, the debt load can be difficult to overcome.

If you realize that you aren't able to cover at least the minimum payments on your credit cards, you might want to explore your options for handling the debt. Filing for bankruptcy is one of these that some people find helpful.

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