For many people, shopping is relaxing and satisfying. Even when money is tight, people in Columbia, South Carolina, walk the mall or scroll through websites looking for a good deal. This is because consumers seem to be more liberal with their credit cards than in recent years. According to a report from WalletHub, credit card debt is soon expected to pass the trillion-dollar mark.
Causing concerns are expectations of rising prices in some critical areas. For example, gas prices are already 45 cents higher than last year. Additionally, the future of individual health care expenses are uncertain with plans to repeal Obamacare. As these prices rise, wages do not. Financial analysts worry that people may begin using their credit cards to pay their rent or mortgages.
At the end of 2016, credit card debt was already 7 percent higher than the previous year, and it is expected to match the historic high of nearly $982 billion reached in 2007. Consumer confidence is higher than it has been in the past 15 years, which accounts for the hike in credit card use. However, analysts say that fewer credit card companies are declaring charge-offs due to delinquencies, so many people must be paying their bills on time.
Nevertheless, as prices rise and wages stagnate, consumers in Columbia, South Carolina, may find themselves weighed down by credit card debt they can no longer afford. When this happens, they may turn to a bankruptcy attorney for help in understanding the options available for debt relief. A compassionate and experienced attorney can guide them in taking the steps most appropriate for resolving their debt problems.
Source: CBS News, “U.S. credit card debt at highest level in a decade”, Jonathan Berr, March 9, 2017