The number of consumers in Florida and around the country who are finding it difficult or impossible to make their minimum monthly credit card payments is worrying economists. The delinquency rate on this type of debt in the United States has risen from 2.12 percent to 2.47 percent in just two years according to the Federal Reserve Bank of St. Louis, and many experts expect it to continue rising in the months ahead despite a thriving economy and low unemployment figures.
These figures reveal that more than $23 million in credit card debt is currently at least 30 days past due. However, it is the reasons why so many Americans are not paying their credit card bills that are of most concern to financial experts. While some Americans simply forget to make their monthly payments from time to time or sometimes skip a month to take care of an emergency or unexpected expense, research suggests that about one in three Americans do not have enough money coming in to make ends meet and use whatever they have to cover essentials like housing and food.
Failing to make even a single credit card payment can push consumers into an inescapable debt trap. Missing a revolving debt payment will almost always result in a late fee, and even those who bring their accounts back up to date very quickly are generally required to pay punitive interest rates, which can often be nearly 30 percent, just for falling behind to begin with.
Those having difficulty managing their financial situations must often also contend with almost daily demands for payment from creditors and debt collection agencies. Attorneys with experience in this area could explain how filing for personal bankruptcy will generate an automatic stay that puts an end to this harassment at least temporarily.