The Financial Times recently reported a rising trend in credit card and revolving account lending in the United States, something that experts say is concerning because of the current economic and political environment in the country. Some economic experts believe that the increased lending could create future issues for banks, and borrowing repeatedly in a questionable economy can certainly create stability issues for individuals and families.
According to the report, lenders provided $18 billion in revolving credit funds to borrowers in just a three month period earlier this year. Most of the major banks also saw an increase in the number of credit card accounts they are dealing with, with the rate of increase ranging from 10 to 26 percent. Four of the nation's banks alone hold $216 billion in consumer debt currently.
Economic experts seem to agree that the situation could prove precarious, and it's something that everyone should keep an eye on. If the larger banks begin struggling to manage such debt loads, the economic trickle-down can impact everyone, including those that don't themselves have revolving credit accounts.
Meanwhile, many individuals and families are already dealing with precarious financial situations closer to home. Whether you are struggling to pay back your part of that multibillion dollar credit card debt or sudden medical bills have made it seemingly impossible to meet your expenses on a monthly basis, you probably have more realistic options for resolution than the big banks at this time.
One of the options individuals have for dealing with a debt crisis is bankruptcy. If you are facing overwhelming financial issues, consider talking with a bankruptcy lawyer instead of relying solely on online advice and information. You might be surprised to find out what you can do about your situation.
Source: Marketplace, "Are consumers taking on too much credit card debt?," Donna Tam, Aug. 01, 2016