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Credit card debt, financially insecurity and annual income

We have often discussed how credit card debt is what causes some people to have to file for bankruptcy. With the economy on the rebound, credit card debt is rising. In 2014, it is estimated that Americans have approximately $57.1 billion in new credit card debt. That is expected to increase to $60 billion this year. Our Pennsylvania readers might find some points about the skyrocketing credit card debt very interesting.

One thing that is important to note is that CardHub considers an average household credit card balance of $8,300 to be unsustainable. As of now, the average for Americans is $7,200, which isn't far off from that unsustainable figure.

Some people are noting that the increase in credit card debt actually shows that Americans feel more optimistic about the economy and the prospects it is providing for them. What it doesn't show is how the gap between income and credit card debt balances are increasing. While the average credit card debt is expected to increase at a rate of around 5 percent from 2014 to 2015, the average annual income of households has only grown a meager 2 percent in the last decade.

Credit card debt and other factors are contributing to Americans feeling financially insecure. In fact, more than half of Americans feel financially insecure. More than half of Americans aren't prepared for a financial emergency.

The merry-go-round of credit card debt and financial insecurity is something that many people are riding. When it is time to stop the merry-go-round, bankruptcy is one option. Learning about bankruptcy, as well as other options, can help you decide how to proceed.

Source: CBS News, "America's skyrocketing credit card debt" Aimee Picchi, Mar. 10, 2015

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Joshua Z. Goldblum, Attorney at Law
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