While the end of year draws celebrations and family gatherings, many individuals are confronted with a reality of financial challenges that will continue to loom after all the confetti and party favors are cleaned up and disposed. Credit card debt is a common worry and cause for stress, especially for people in Kentucky facing unemployment. Increasing expenses, an inability to pay interest and lack of income often results in collection companies calling at all hours.
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.
It is well-known right now that burdensome student loan debt is a major problem for a growing number of young Americans. Together with disappointingly slow growth in the job market, student loan debt has literally crushed the spirit of many. Along with this, there has been a corresponding growth in the number of debt relief schemes aimed at graduates.
Living on a fixed income presents a whole host of unique challenges. However, this is something millions of senior citizens deal with on a day-to-day basis. Even though retired seniors are past their most significant income-earning years, they might still deal with growing expenses and debt.
Medical debt is a real burden for many Americans. As the costs of health care have increased and insurance companies have decreased coverage, the problem has been growing. Experts say that the average American household of four had over $20,000 of healthcare costs in 2013. For those who have the insurance coverage and disposable income, these costs are not ruinous. For many families, though, this just isn’t the case.
Student loan debt is a burden for many Americans. At present, nearly 7 million are unable to pay their student loan bills each month, and many more are on the verge of being unable to afford their payments. In this environment, it shouldn’t come as a surprise that companies are now offering to help reduce or eliminate that debt at a cost.
According to new research by credit score provider FICO, more and more young Americans are choosing to forego the use of credit cards since the recession. In fact, the number of consumers ages 18 to 29 has reportedly doubled since the recession. Roughly 8 percent of consumers from this group had no credit card in 2007, but that number rose to about 16 percent in 2012.