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Credit card debt level falls to lowest rate in three years

| Dec 9, 2020 | Debt |

Millions of people in America, including some in Michigan, struggle with credit card debt as they work through their individual and household budgets. Some do their best to pay their monthly minimum payments. Others simply aren’t able to find a way to address debt that might have added up to thousands of dollars – or more. In fact, credit card debt is such a problem for some people that they eventually find out that bankruptcy might be their best option in a bad situation.

Credit card debt in America

Fortunately, a recent news report noted that, overall, credit card debt in America in 2020 has reached its lowest level since 2017. The report noted that even in this past year, when so many people lost their jobs and had to cope with financial hardship, it appears that people are not relying upon their credit cards as much as one would think. As of now, total outstanding credit card debt in America is $756 billion, according to the report.

That overall total still probably sounds like a huge amount, but the report notes that it has fallen from the higher point of $829 billion, reached in 2019. It seems that when finances get tight for individuals and families in America, they may focus more on saving and paying down debt to get a better grasp on their overall financial situation.

Unfortunately, there are still many people who don’t have the ability to pay down debt, including credit card debt. For those individuals, filing for bankruptcy may provide a path to financial stability and long-term success.