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Credit Card Debt Archives

Spike in credit card debt veers near pre-recession levels

A consumer finance web site has reported that consumers in Arkansas and nationwide racked up an impressive $33.4 billion ticket in total credit card debt in the second quarter of 2016. The rapid pace of credit card debt accumulation puts the consumer population on a pace to achieve a record of $1 trillion of such debt by year's end. The situation is becoming reminiscent of the 2008 financial crisis that capped a kind of national frenzy of consumer spending and borrowing, rather than saving.

Increased credit card use may indicate new bankruptcy increase

The use of credit cards is increasing in Arkansas and nationwide, and more consumers are missing payments, according to reports issued by Synchrony Financial, the largest distributor of retail store credit cards. Economic experts view this as a sign of an oncoming recession. It may also bring an increase in bankruptcy filings in the near future.

Remedies are available to overcome mounting credit card debt

It is reported that consumers nationwide, including in Arkansas, carry increased levels of credit card debt. Researchers have been able to determine which age groups are the biggest spenders. However, the question that remains unanswered is on what consumers with high credit card debt are spending their money.

Too much debt may point to bankruptcy instead of payment plan

When the debt load of an individual or family residing in Arkansas or elsewhere reaches a certain point, it may be that no comprehensive payment plan with creditors can possibly succeed. The consumer's limited ability to repay in affordable monthly installments, based on available income and necessary living expenses, may doom the plan at the outset. If such a repayment plan were attempted, it would take decades to pay off the debt, and, in some cases, the amount owed may go up rather than down. That scenario is generally one that cries out for bankruptcy relief.

Financial hardship engenders a search for realistic remedies

We all know the spending temptation that is engendered by the holiday shopping season. Advertising and intensive marketing campaigns in Arkansas and nationwide make it difficult to use credit cards conservatively. Many persons who are trying to keep a tight budget may stray into the grip of credit card dependency, and some may encounter dire financial hardship in the process.

Is credit card debt threatening your retirement?

As Arkansas people approach retirement, some may be concerned about their current financial situation. It has been reported that credit card debt nationwide is escalating toward the high levels that were recorded in 2008. To ensure you do not go into retirement with loads of credit card debt, you can take some precautionary steps.

After bankruptcy, using debit card for family budget makes sense

Most consumers likely have a pinch of doubt over whether to use a credit card or a debit card. A credit card will increase one's credit score, as long as the full bill is paid timely or early each month. For that reason, Arkansas citizens who wish to maintain existing credit or to improve a declining credit record will generally want to have one or two credit cards for reporting purposes. Alternatively, one may be entering or just completing a bankruptcy, with a strong interest in credit rebuilding, thus mandating the use of one or two credit cards for similar reasons.

Some online borrowers turn to bankruptcy for effective relief

There is a new kind of loan that is being offered online to people nationwide, including here in Arkansas. The online loan business is gearing up quickly, offering certain advantages, such as quick approval times, lower interest rates and straightforward terms. However, some borrowers have overextended themselves by taking out too many online loans, thereby creating a situation where they are in too deep without a viable remedy. When that happens, many borrowers are learning how effective the bankruptcy remedy is for eliminating unsecured debt.

Beware of scammers offering to resolve credit card debt issues

It is not uncommon for Arkansas consumers who are overwhelmed by credit card debt to fall prey to businesses that promise to resolve their debt issues. Unfortunately, the desperation to get out of the spiral of unmanageable credit card debt makes some people blind to the fact that if an offer sounds unbelievably good, it is probably a scam. A federal court has recently halted an operation run by scammers who offered debt relief nationwide.

Overwhelming holiday credit card debt may cause sleepless nights

Some Arkansas consumers may have joined millions of others in spending more than they intended to over the holidays. Unfortunately, spending may lead to more debts and more bills. January is typically the month when consumers start strategizing on how to pay their credit card debt. Out of desperation, some consumers resort to digging into their emergency funds or life insurance to pay credit card debt.