Americans often rely on using credit to make both necessary and luxury purchases. Unfortunately, this consumer culture has led to a great deal of credit card debt in the country. The inability to pay bills on time, and making only minimum payments, could result in interest atop mounting expenses, and a vicious cycle of continuously owing money.
It can be especially stressful dealing with creditors calling from credit card companies when you are struggling with financial challenges from unemployment or consumer debt.
According to a recent study, more than 35 percent of Americans have been reported to collection agencies. These individuals apparently have debts resulting from such sources as medical expenses (accounting for almost 40 percent of debt), student loans (over 25 percent), credit cards (more than 10 percent) and mortgages. According to reports, the collections industry recovers approximately $50 billion each year.
These figures have remained fairly consistent in spite of the drop in credit card debt overall across the U.S., including New Jersey, since the end of the recession in 2009. Relative to the income produced by individual Americans, credit card debt has actually reached a low point over the past 10 years as people are increasingly paying off their balances every month.
Although it is not a simple solution and may not be suitable for everyone facing debt collection, filing for bankruptcy can often help in providing relief from creditor harassment. If you are experiencing unsustainable credit card debt, it may be helpful to seek the advice of a legal professional who can discuss your possible legal options for dealing with your financial matters.
Source: NorthJersey.com, “Study: 35 percent in US facing debt collectors,” Josh Boak, July 29, 2014