Despite news reports of an economic upswing in recent months, U.S. consumers are still well over their heads in debt. According to the Federal Reserve, there is $2.4 trillion in unsecured consumer debt. That figure amounts to approximately $7,800 per person. By comparison, total U.S. credit card debt in 1968 was less than $8 billion. By 2009, that number rose to $972.73 billion.
According to Lundquist Consulting in California, 115,000 people filed for Chapter 7 and Chapter 13 bankruptcy protection in November 2010 alone. There were 9 percent more bankruptcy filings by November 2010 than in the previous year. Nationwide, 1 out of every 160 people filed bankruptcy.
Experts say the high debt numbers are due to high unemployment numbers. While steadily improving, employment numbers have yet to reach the pre-2008 level. In addition, middle-income households report that medical expenses prevent them from making on-time credit card payments.
The Federal Reserve Bank has a simpler answer. It says that American consumers spend more than they earn.
Overwhelming credit card debt does not have to ruin your life. Contact a Washington DC bankruptcy attorney for helpful bankruptcy information. A Washington DC attorney experienced in bankruptcy can help you get a fresh financial start to your life. A free telephone consultation is available.