As most Americans know, the economy is in constant flux, going up and down with more severe rises and falls that come with greater risk. While much of the country has recovered from the 2008 recession, there are signs that people are again building up debt, perhaps at unsustainable levels.
Trends show rising credit card debt in the country. Reuters reports that debt levels and delinquent payments rose in late 2017. In addition to credit card borrowing, households own debt on mortgages, auto loans and student loans.
Not all debt is bad
While home and car sales are used to measure consumer confidence in the market, credit card borrowing offers a unique look at the daily spending patterns instead of big item purchases. Economists don't view debt as a negative, but when the rate of people who can't pay their debt increases, it suggests a vulnerable situation. Late payments rack up additional charges, creating a snowball effect for individuals who may be struggling to get by.
It's common to have bills and income vary. Sometimes a credit card user only pays the minimum while waiting for a big payday the next month or because of a large medical expense or household appliance cost an unexpected chunk of money.
Finding relief for mounting debt
Anyone who is struggling to pay off debt each month may need help to resolve the situation before it risks their well-being. Bankruptcy provides debt relief in a number of forms. Some options allow borrowers to keep their possessions and reschedule payment, while others focus on liquidation and moving toward a fresh start. To learn more about different consumer and business bankruptcy options, consult an experienced Florida attorney.