As Texas residents may know, an interest rate hike by the Federal Reserve
may have a serious impact on
credit card debt. Many analysts believe the rate will rise by 0.25 percent in September
2015. Debt owed on credit cards ranks behind household mortgages and student
loans. The metropolitan area with the highest credit card balances is
San Antonio, while the lowest balances are found in San Francisco.
The Federal Reserve reported that the amount of debt owed on credit cards
rose in May 2015 to $901 billion, a 3.19 percent increase over the total
amount from the previous May. A positive sign is that fewer households
owe debt on credit cards, according to a survey conducted by a national
counseling foundation. The number of individuals paying their
debt balance off appears to be slowly increasing as well.
Delinquencies are falling, according to a bankers association. However,
a number of delinquencies were because of the monetary crisis where large
numbers of individuals declared bankruptcy to get rid of unmanageable
debt loads. An analysis of federal data shows that in July 2015, the average
credit card holder owed an outstanding balance of $15,863.
Options for lowering credit card debt include requesting a lower rate or
waiver of late charges from the credit card company itself. One credit
card survey found that late fees were lowered for about 80 percent of
individuals and rates lowered 60 percent. In addition, a balance transfer
with zero interest may be possible, but this method may no longer exist
if interest rates go up.
When debt owed on credit cards becomes overwhelming, it may benefit a consumer
to consult with an attorney experienced in bankruptcy law. There are certain
eligibility and other requirements associated with
filing for bankruptcy that legal counsel can explain during a discussion of debt relief alternatives.
Houston bankruptcy attorney is ready to help you--schedule a case evaluation today!