American Consumers Carrying Too Much Debt According to Report

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.

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