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Report: credit card debt increased significantly in April

According to a recent report by the Federal Reserve, the rate of growth in consumer credit card debt is the fastest it has been in over 12 years. A particular increase in consumer borrowing was seen in April, during which borrowing increased to $26.8 billion from $19.5 billion in March. The reasons for the increase are not fully known, though automobile and student loan debt is said to have been big contributors, as well as credit card debt. Other reasons for the increase probably include increasing employment and growth in income for many households.

As readers know, many Americans have been reluctant to take on additional credit card debt since the recession. The trend toward increased use of credit cards has been growing since 2011, but at a relatively slow pace when compared to other types of debt. According to experts, the recent increase in consumer credit card debt is a sign of an improving economy. 

Credit card debt is obviously a common issue for many Americans. According to Nerdwallet.com, the average household is burdened with $15,191 in credit card debt. Overall, credit card debt accounts for the third biggest source of debt, after mortgage and student loan debt. When credit card debt gets out of control, it becomes necessary to look into ways of managing that debt. In some cases, bankruptcy is the most sensible option for obtaining relief.

Those who are looking into the possibility of a bankruptcy filing for credit card debt should contact an experienced bankruptcy to have their case evaluated and determine whether a filing makes sense, and if so, what type of filing. Working with an experienced attorney can help the process go a lot more smoothly than proceeding alone.  

Source: Kentucky.com, “US consumer spending surges in April,” Martin Crutsinger, June 6, 2014.Nerdwallet.com, “American Household Credit Card Debt Statistics: 2014,” Tim, April 2014. 

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