Avoiding credit card debt is often easier said than done. Whether a California consumer racked up a bill because of a medical emergency, an unexpected bill, regular spending or any other number of situations, paying a large balance off can be difficult. With the average household credit card debt on the rise, Chapter 7 bankruptcy might be the best option for those who are struggling.
Credit card balances seemed to decline in the years following the Great Recession, but they are on the rise again. With American consumers currently carrying a collective $949.9 billion on their credit cards, experts predict that balances could surpass those during the Great Recession as soon as 2019. When compared to the average credit card balance of approximately $2,000 in 1988, it might be hard for some people to not feel worried.
The personal finance website WalletHub recently reported that the current levels of credit card debt are not an indication of good things to come. Despite paying off $40.8 billion on their credit cards in the first quarter of 2018, Americans have since added back $38 billion. According to WalletHub, this puts the average American $177 off of an unsustainable debt track.
Credit card debt is not an uncommon problem, and many people in California are dealing with rapidly growing balances. Repayment often feels difficult or impossible altogether, leading some to go without basic needs or to decide among paying different bills. For those who have already reached the point of unsustainability, filing for Chapter 7 bankruptcy can help stop harassing creditors and discharge qualifying debts.