Think back to late September of 2001. As the public processed shock and grief related to the terrorist attacks against our nation, many individuals questioned what they could do to help in the aftermath. The public was urged to donate money to help the victims, to send supplies to Ground Zero and to spend money in ways that would prevent the economy from declining significantly.
In the wake of the 2001 terrorist attacks, Americans eager to help in any way they could ran up their credit card debt at a rate of 12.3 percent gain annually. This substantial spike in credit card debt has not been seen in America again until now. Practically, this means that Americans increased their credit card debt by a staggering $8.8 billion in April alone, according to the Federal Reserve.
There are numerous reasons why Americans might be running up their credit card bills at such a significant rate. For example, non-revolving credit types like student loans and auto loans increased at a rate of 10.2 percent annual gain in April. If consumers are focused on paying off other loans, they may feel the need to place everyday expenses on their credit cards in order to make ends meet.
Individuals often run up their credit card bills out of necessity or with the best of intentions. However, overwhelming credit card debt can quickly spiral out of control. If your credit card bills are consistently higher than you can manage, it may be time to seek out successful debt relief options. Please consult an experienced attorney with your questions about navigating your way out of overwhelming debt.
Source: SavingAdvice.com, “Americans Love Debt Again: Consumer Credit Card Spending Surges by $8.8 Billion,” Jeffrey Strain, June 7, 2014