New surge of Americans needing help with credit card payments
More and more consumers are falling behind on credit card payments, a sign that help is needed.
While the global economic recovery continues to reach new heights, not all is well in the financial lives of many Americans.
Homeowners have worked hard to put the Great Recession in their rearview mirrors – mortgage delinquency rates are at their lowest levels since 2008 – but debt continues to pile onto college students, who now owe more than $1.4 trillion, as well as everyday consumers.
Forbes reports that U.S. household debt is up nearly 1% to an all-time high of $12.8 trillion, and serious credit card delinquencies have risen for three quarters in a row. This is the first time that trend has surfaced since 2009, when people were dealing with the aftermath of the financial crisis. Those stats come from the Federal Reserve Bank of New York’s Center for Microeconomic Data.
What’s even more concerning is that compared with recent years, more people today have credit card debt despite the fact that total consumer spending is down.
Among the many solutions to credit card debt, knowledge and access to resources are key.
“We know from many years of experience that the most powerful way to solve debt problems is to empower consumers with the knowledge and experience they need to map a solid plan of action,” said National Foundation for Credit Counseling board chair Debbie Bianucci.
To help consumers understand their options and find the best way to cut credit card interest rates, consolidate debt and lower their monthly minimum due so they no longer fall behind on payments, finder.com has developed a comprehensive guide to debt consolidation, which includes answers to frequently asked questions, a debt refinancing calculator and easy-to-use comparisons of solutions like low-interest balance transfer credit cards and personal loans.
Reducing credit card debt to a manageable level is an important first step toward a sustainable plan to get out of debt.