According to the financial world, the American consumer is doing well. Unemployment is down, consumer spending is up and credit is readily available. While this may be good news to some South Carolina residents, it can also be a concern for others. Some residents are discovering that they are drowning in credit card debt and auto loans with no apparent way out.
Research indicates that consumer debt will reach as high as $4 trillion this year. This is great news for retail stores and car dealerships; however, it can easily become a problem for the lender if the economy starts to slip. However, for the consumer, it can become a problem much earlier. This same research also shows that defaults on credit card debt and auto loans are also rising.
The average South Carolina resident has found debt fairly easy to acquire in recent years. This has made that new outfit too tempting to pass up and home makeover appealing. These bills are generally small by themselves. However, when added to a mortgage, auto loans, student loans and other regular monthly bills, credit card debt can quickly get out of control.
Some South Carolina residents are successful in getting the situation under control and reducing their debt on their own. Others, however, discover that this is simply not possible given their current income and expense picture. When this happens, it is time to take action and take a look at possible alternatives to sinking deeper in debt. Bankruptcy may be the appropriate choice; experienced legal counsel can assist in reviewing available options.
Source: pymnts.com, “America’s Daunting Debt Picture”, May 22, 2018