Credit Card Debt Archives - Kingcade Garcia McMaken, P.A. Bankruptcy Attorneys

Credit Card Debt Tops $1.28 Trillion in U.S.

Posted on February 24, 2026by Admin

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.

Federal Reserve Cut and What It Means for Mortgages, Credit Cards, Car Loans

Posted on October 7, 2025by Admin

The Federal Reserve cut its standard interest rate for the first time in nine months. Since the last cut, Americans are dealing with more inflation and a challenging job market.

The federal funds rate, set by the Federal Reserve, is the rate at which banks borrow and lend to one another. While the rates that consumers pay to borrow money are not directly linked to this rate, shifts in Fed policy affect what people pay for credit cards, auto loans, mortgages, and other financial products.

The Fed projected it will cut rates two more times before the end of this year.

Mortgages will be affected gradually.

For prospective homebuyers, the market has already priced in the rate cut, which means it is “unlikely to make a noticeable difference for most consumers at the time of the announcement,” according to Bankrate financial analyst Stephen Kates. It is anticipated that the declining interest rate environment will provide relief for borrowers over time.

Auto loans are not expected to decline soon.

Americans have faced steeper auto loan rates since early 2022, which are not expected to decline anytime soon. Prices for new cars have leveled off recently, but remain at historically high levels, not adjusting for inflation. An auto loan annual percentage rate can run from about 4% to 30%. Bankrate’s most recent weekly survey found that average auto loan interest rates are currently at 7.19% on a 60-month new car loan.

Credit card rate relief could be slow.

Interest rates for credit cards are currently at an average of 20.13%, and the Fed’s rate cut may be slow to be felt by anyone carrying a large amount of credit card debt. The best thing for anyone carrying a large credit card balance is to prioritize paying down high-interest-rate debt, and to seek to transfer any amounts possible to lower APR cards or negotiate directly with credit card companies for accommodation.

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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of 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.

Credit Card Debt

Three Simple Mistakes That Can Drive Up Your Credit Card Debt

Posted on September 26, 2025by Admin

Credit card debt has become a growing financial strain for millions of Americans. The latest data from the Federal Reserve Bank of New York, reveals U.S. consumers owe a collective $1.21 trillion in credit card debt. With an average interest rate of 22%, even small mistakes can set off a chain reaction that leads to mounting balances.

Here are three mistakes that make your credit card debt more expensive.

1. Paying your credit card bill late

Missing your due date doesn’t just hurt your credit score, it costs you money. Most card issuers will charge customers a late fee of up to $35. In addition, when your payment is late, your ‘grace period’ can disappear, which can cause interest to accrue immediately on new purchases.

2. Allowing a balance to carry over from one month to the next

Carrying a credit card balance from one month to the next is one of the fastest ways for your debt to spiral out of control. You may think it’s manageable to carry a credit card balance over from one month to the next, especially if you’re only short by a few hundred dollars each month. However, unlike installment loans, credit card interest compounds daily. That means every day your balance remains unpaid, interest is added, and then you’re charged interest on the interest.

3. Not taking advantage of balance transfers, debt consolidation or other available strategies.

Another credit card mistake that can cost you is sticking to the status quo when you have options to lower your costs. For example, many credit card companies offer 0% balance transfer promotions for 12 to 21 months, giving you a chance to make real progress on your balance without added interest. While there will typically be a small transfer fee tied to these promotions, the savings can be substantial if you’re strategic about paying down your balance during the promotional period.

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As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.

Filing for bankruptcy is a viable option for those struggling with insurmountable credit card debt. Chapter 7 is the fastest form of consumer bankruptcy and forgives most unsecured debts like credit card debt, medical bills, and personal loans. There are certain qualifications a consumer must meet in regard to income, assets, and expenses to file for Chapter 7 bankruptcy, which is determined by the bankruptcy means test.

Credit Card Debt

Credit Card Debt Report for 2025

Posted on August 21, 2025by Admin

Credit card interest rates are at an all-time high, averaging above 20 percent. The implications of credit card debt are far-reaching. Here are several key insights from Bankrate’s 2025 Credit Card Debt Report.

46% of credit cardholders report having a credit card balance. About a quarter (23%) do not think they will ever be able to pay it off.
Emergency and day-to-day expenses, such as groceries, childcare and utilities, are the most common reasons for credit card debt.
Credit card debt causes Americans to hold off on important money milestones. Saving for an emergency (34 percent), investing (23 percent) and buying a vehicle (21 percent) are the most likely to be set back.

Approximately how long have you been carrying a balance on your credit card(s)?

Note: Among respondents who carry a balance on their credit card(s). Source: Bankrate surveys, June 2-4, 2025, November 13-15, 2024.

Click here to read more.

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.

Credit Card Debt

Can You Inherit Credit Card Debt?

Posted on July 11, 2025by Admin

Credit card debt continues to put a drain on household budgets. The average monthly credit card balance is up to $6,618, according to Experian. At the same time, the Federal Reserve reports that average interest rates on credit cards remain at 21.37%, with many card issuers charging rates around 30% and higher.

If this is something you’re struggling with, you may wonder what happens to this debt if you pass away. Does a loved one inherit your credit card debt, or does it simply die with you?

Typically, the deceased person’s estate settles the debt. If the estate lacks the funds to pay it off, the remaining balance may go unpaid and not be passed on to surviving family members.

The family is not liable for the balance unless legally connected to the debt. For example, if the person is a cosigner on the debt or it’s a joint credit card. Spouses in community property states (and domestic partners in some cases) could be responsible if the debt was taken out during the marriage.

There are many misconceptions about credit card debt and who is responsible for it when someone dies. If a parent dies with credit card debt, the child inherits the debt is a common assumption. This is false. Unless the child was a cosigner or joint account holder.

If you are unsure who is legally responsible for a debt, it is important to consult with an experienced attorney. If debt collectors are harassing you, remember that the Fair Debt Collection Practices Act (FDCPA) protects you from threats, false claims and repeated calls.

RELATED RESOURCES:

What Happens to Debt After You Die? U.S. News & World Report

Can You Inherit Credit Card Debt? Experts Weigh in CBS News.com

Bankruptcy Trends, Credit Card Debt

More People Filing for Bankruptcy Have Retail Credit Card Debt

Posted on July 1, 2025by Admin

Store credit cards, which most major retailers offer, carry a much higher interest rate than traditional credit cards. Since 2021, the number of people with retail credit card debt that file for bankruptcy has been rising at a faster rate than new filings overall, according to proprietary data and analytics from Stretto.

Between 2023 and 2024, new consumer bankruptcy filings rose 5.8% but the number of cases that included retail credit card debt rose 12%, a CNBC analysis of the data shows.

Click here to read more on this story.

While each consumer’s financial situation is different, there are ways to determine if your credit card debt is too high. Consider your answers to the following questions:

Is your credit card debt impacting your financial and emotional health? Carrying large amounts of credit card debt can damage your credit score and cause you to experience financial and emotional stress. A good rule of thumb is to ensure your monthly payments are not more than 10 percent of your monthly income.
Are you paying only the minimum? Credit cards typically have low monthly minimum payments, but that doesn’t mean they are affordable just because you can cover that amount. If you are only able to make the minimum payment, that can be a sign you have too much credit card debt.
Is your credit card debt impacting your credit score? Credit cards can help your credit score- or hurt it, depending on how you use them. It is recommended that you keep your credit utilization below 30 percent. Having significant credit card debt can have a negative impact on your credit score. This can make other debts, like your mortgage and car payments more expensive.

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.

Consumer Debt, Credit Card Debt

The Emotional Burden of Debt on Your Mental Health

Posted on April 8, 2025by Admin

Today, as the U.S. is facing economic uncertainty and high inflation, consumers are feeling an increase in financial pressure. Everyday costs are on the rise, and struggling to afford the basics is a challenge for many.

The result? Higher levels of debt are becoming more widespread.

Debt can cause a lot of damage, and not just to your credit score. Carrying any amount of debt can be stressful, but carrying substantial amounts of debt can be debilitating to a consumer’s emotional well-being. Credit card debt can cause stress, which can lead to depression, anxiety, and other health problems.

Over half of the adults in the U.S. with a debt problem are also living with a mental health issue, according to a study from the Royal College of Psychiatrists.

High levels of debt can also lead to stress and arguments within marriages. In fact, arguments about money are one of the top causes of divorce in America, after infidelity. Debt and stress often go hand in hand. It’s natural to worry about debt and if you will ever get out of it.

According to the Stress in America survey conducted by the American Psychological Association, 87 percent of Americans reported the rising cost of living as a significant source of stress. The survey also found an increase in the percentage of Americans stressed about the economy, and finances in general.

Click here to read more.

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 advise you of 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.

Credit Card Debt, Debt Relief

Total Household Debt by Type

Posted on February 5, 2025by Admin

American household debt stands at a whopping $17.943 trillion dollars. Mortgage debt makes up 70% of that. Inflation has contributed to more debt and the average debt rising in nearly every category compared to 2020. This includes total household debt, credit card debt, mortgage debt, and auto loan debt. Total debt is up by over $2.5 trillion since 2020.

According to the latest Household Debt and Credit survey, Americans owe $1.166 trillion in credit card debt as of the third quarter of 2024. That’s a record high, up from $1.162 trillion in the second quarter. Americans had an average of $6,501 in in credit card debt in the third quarter of 2023, according to Experian.

Based on data from the second quarter in 2023, Gen X carries the highest average credit card balance, $8,870, while Gen Z carries the lowest average credit card balance, with $3,148.

Paying off debt and finding relief.

It may seem like you have too much debt to ever get out of. However, the first step is to address your debt. Understand the total amount of debt you have. From there you can determine what type of debt you hold, like credit card debt, mortgage, or auto loan. Then it is important to note how much you owe, what the interest rate is, and what the minimum payment amount is for each type of debt you own.

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges.

SOURCE: Average American Household Debt in 2024: Facts and Figures

Business Bankruptcy, Credit Card Debt, Small Business Bankruptcy

What Happens If You Can’t Pay Your Business Credit Card?

Posted on January 22, 2025by Admin

If your business has fallen on hard times, and you can no longer afford to pay your business credit card, you have options. But ignoring the debt will only make matters worse.

In the perfect world, inconsistent cash flow would never be an issue for a small business. But many businesses face it, along with economic uncertainty, and inflation.

Failing to make payments on a business credit card can result in late fees, higher interest rates, and significantly damage your business and personal credit scores.

Missing payments on your business credit card can trigger a series of penalties and actions. The most severe being legal action against you and your business. Consequences for nonpayment include:

Late payment fees
Penalty annual percentage rate, or APR.
Lower credit scores (both your business and personal)
Debt collections
Lawsuits

The personal guarantee on a credit card applies to all business types, including limited liability companies, or LLCs, and corporations. The personal guarantee surpasses any limited liability protections and gives the credit card issuer the explicit right to come to you personally for payment.

The personal guarantee is typically spelled out in the terms and conditions you agree to when signing up for a business credit card. The card issuer checks your personal credit using your social security number to determine how likely you are to repay the debt, when qualifying you for the card.

If you are struggling with business credit debt, contact your card issuer as soon as possible, to minimize penalties and damage to your credit. Your card issuer may be willing to establish a payment arrangement and can inform you of available hardship programs.

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges. If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of 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.

SOURCE: https://www.nerdwallet.com/article/credit-cards/business-credit-card-personal-guarantee-explained

Credit Card Debt

Average American Household Has More Than $10,000 in Credit Card Debt

Posted on December 28, 2024by Admin

As of the third quarter of 2024, the average American household credit card balance was about $10,757.

The personal-finance website WalletHub released a new credit card study, which found that consumers added $21 billion in debt during the third quarter of 2024.

Early results for the fourth quarter of the year show preliminary data for October at a record high for credit card debt.

The record-high credit card debt in October reflects a 3% year-over-year increase after inflation adjustments, driven by rising interest rates and holiday spending. While Q3 debt growth slowed compared to 2023, total debt remains high at $1.29 trillion.

With the holidays winding down, many Americans are expected to add more to their credit card balances before the end of the year.

As bankruptcy attorneys, we see credit card debt as one of the most common problems facing those with serious financial challenges. It is not surprising with the high interest rates, unreasonable fees, harassing debt collection calls, penalties and never-ending minimum payments that do not even make a dent in your actual debt.

Filing for bankruptcy is a viable option for those struggling with insurmountable credit card debt. Chapter 7 is the fastest form of consumer bankruptcy and forgives most unsecured debts like credit card debt, medical bills, and personal loans. There are certain qualifications a consumer must meet regarding income, assets, and expenses to file for Chapter 7 bankruptcy, which is determined by the bankruptcy means test.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of 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.

SOURCE: https://www.thecentersquare.com/national/article_408ef9cc-b429-11ef-8570-fb91e62992d2.html