With a strong economy and low levels of unemployment, consumer confidence is high. This leads to increased spending, which may leave some consumers with a large amount of credit card debt. Rising levels of credit card debt are especially concerning considering that most people in Tennessee received smaller tax refunds or no refunds at all, and wage levels continue to remain stagnant.
Credit card debt is a common issue for middle class, but statistics indicate this is a growing concern for upper middle class as well. This group of consumers has more expendable income and assets to handle a larger balance, but they often do not pay off this type of debt. The result is more and more American consumers nearing or entering retirement with a significant amount of credit card balances.
On average, American households will have almost $10,000 in credit card debt by the end of this calendar year. Experts believe this could indicate a financial crisis is likely at some point in the near future. People will reach their financial breaking points, and some will default on their credit card payments. Growing credit card balances could indicate that a recession is coming at some point over the next few years.
Tennessee consumers who have more credit card debt than they can manage may wonder what they can do to escape this growing burden. In some cases, it may be appropriate to seek the protection of bankruptcy, which can allow a person to deal with his or her unsecured debt effectively. A complete assessment of a person’s individual situation can help him or her understand the specific options available.