Americans owe $1.28 trillion on their credit cards, according to a new report by the Federal Reserve Bank of New York on household debt. That’s a 5.5% jump from the previous year. Near the end of the year, credit card debt typically increases during peak holiday shopping season.
Credit cards are one of the most expensive ways to borrow money today. Approximately, 175 million people in the U.S. have credit cards, and while some pay their bills in full each month, roughly 60% of credit card users carry a balance from one month to the next, according to the New York Fed.
A separate report by the debt management company, Achieve, revealed that more than half, 55% of consumers carry credit card balances to cover essential expenses.
There’s also a growing number of homeowners falling behind on their mortgage payments. Increased mortgage delinquency rates have been more pronounced in low-income areas.
Housing affordability challenges are not only weighing on ‘would-be’ home buyers, but also a growing share of existing homeowners, new data suggests. Late-stage mortgage delinquencies — those with payments at least 90 days past due — rose 18.6% in December from a year earlier, according to new research from credit scoring company, VantageScore.
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If you have questions on this topic or are in a financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can assist you and address all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild, and recover. The day you hire our firm; we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.
