15 years of experience put to work for you

  1. Home
  2.  » 
  3. Debt
  4.  » 2020 sees $83 billion payoff in credit card debt

2020 sees $83 billion payoff in credit card debt

| Mar 11, 2021 | Debt |

Many people in the Southfield area carry at least some credit card debt. Some of these people may find paying off their credit cards every month to be relatively simple. However, many people find that their credit card balances are always rising, with interest compounding, especially if they find themselves in a situation where they are using a credit card to pay for life’s basic necessities. In some good news, however, during 2020 Americans repaid nearly $83 billion in credit card debt.

2020 sees record repayment in credit card debt

2020 saw a record in credit card debt repayment. According to a CNBC report, people in the U.S. are paying down more debt than they have in decades. Refinancing and low interest rates have reduced monthly bills, making them more affordable. Federal financial relief and an extended pause in loan repayments have not only given the financial boost Americans need to address their monthly payments but have also given them the chance they need to catch up on past-due payments.

Bankruptcy and credit card debt

While this may be good news for some, currently many people are still facing unmanageable credit card debt. When this happens, they may want to consider filing for bankruptcy. In a Chapter 7 bankruptcy filing, a person’s assets (with some exclusions) will be sold and the proceeds used to pay back their creditors, after which their remaining debts (with some exceptions) will be discharged. In a Chapter 13 bankruptcy filing, a person will enter into a court-approved three- to five-year repayment plan where they will make monthly payments to a bankruptcy trustee, who will use the funds to pay the person’s creditors. At the conclusion of the plan, the person’s remaining debts (with some exceptions) will be discharged.

Learn more about bankruptcy

Filing for bankruptcy has an undeserved stigma. It is not a sign of failure, in fact, just the opposite. It is a sign that you are willing to do what it takes to address your debt in a responsible matter. This post is for educational purposes only and does not contain legal advice. We encourage you to explore our firm’s website on bankruptcy to learn more about your possible options.