Americans are paying off credit cards more slowly

On Behalf of | Jul 14, 2017 | personal bankruptcy |

The Great Recession left many Illinois families on hard financial times. Unemployment in and of itself left many without the funds they need to make ends meet. Thus, many of these individuals and families had to turn to credit cards to stay afloat. Although the nation has steadily climbed out of the recession, many Americans continue to see themselves overwhelmed with credit card debt.

In fact, a recent study found that many Americans have slowed down the pace at which they pay off their credit card debt. Some analysts suggest that the sharp increase in declining credit card payoffs point to loosening industry lending standards rather than tough financial times for Americans. After all, they claim, the Great Recession triggered tougher standards so that banks could protect themselves from those who were unable to pay off debt. Now that the economy has recovered, those banks are loosening up a bit.

The only problem is that the rates reported are back up to historic levels, causing concern that the standards may not be tight enough. This means that those who may otherwise be unable to pay off credit card debt are being allowed to obtain credit cards. The fear is that these individuals may be unable to pay off their debt which, in turn, could trigger more financial instability in the markets.

The saddest part of this story is that so many Americans still rely on credit cards as a last alternative. For these Americans, financial fears leave them unable to sleep at night, and their vision of the future is bleak. Yet, it doesn’t have to be this way. Instead, those facing insurmountable debt may be able to find debt relief, most commonly through bankruptcy, which can provide a fresh financial start. Those who want to learn more about how they can pursue debt relief can speak with an experienced legal professional.

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