If there is one kind of debt that can add up quickly and make it hard to eliminate what you owe, it’s credit card debt. Credit cards often have high interest rates. Missing a payment can lead to penalty fees and rate increases, too. You’re not alone if you’re struggling with credit debt. Total credit card debt in the U.S. rose to $930 billion in the final quarter of 2019, which is an all-time high.
Unfortunately, that increase in debt came with a .16% delinquency rate compared to the previous quarter. Overall, credit card delinquency is around 5.32%. Credit card holders between the ages of 18 and 29 are the most likely to be delinquent compared to people in other age groups.
Bankruptcy can be a solution for overwhelming credit card debt
In some cases, bankruptcy can be an appropriate solution to help you get out of debt. For example, if your credit score is low because you’ve missed a number of payments, you may not have other options like balance transfers or personal loans available to you. Instead, a Chapter 7 or Chapter 13 bankruptcy may give you a better opportunity to eliminate what you owe and to move forward with better financial stability. If you’re younger and are still learning to manage money, it may be advantageous to take credit counseling courses or to talk to an accountant during or after your bankruptcy.
It’s easy to get in to debt, but getting out isn’t always simple. Our website has more on debt and what to do if you’re overwhelmed by credit card debt. We invite you to keep reading.