Many Americans have debt in some form, whether it is a mortgage, an automobile loan, a student loan or credit card debt. Although a great number of people view debt as unavoidable, it is generally understood that there are good types of debt and bad types of debt. Credit card debt, because of the expenses related to interest charges and fees and the potential for creditor harassment, is often classified as bad debt.
When consumers begin to struggle under significant credit card debt, they often feel powerless against the credit card companies. However, there are certain laws that specifically limit certain actions by credit card companies and impose specific duties. One of the primary laws that protect users of credit cards is the Credit CARD (Card Accountability Responsibility and Disclosure) Act that was passed in 2009. All of the provisions contained in the Act are now in effect.
Credit cards can be a great financial tool for New York residents who need to make a large purchase or cover the expenses associated with an unexpected emergency. Unfortunately, however, credit card debt can quickly snowball, creating significant financial hardships for consumers. Many people struggling with high levels of credit card debt face creditor harassment, late fees and interest rates that can make paying off a balance seem impossible. In some cases, extreme levels of credit card debt can lead to filing for bankruptcy.
Credit card debt is familiar to most American consumers. Although many consumers are able to manage their debt levels, others fall may fall into trouble-often due to no fault of their own. Many New York consumers who carry credit card debt are able to effectively make payments and keep ahead of their credit card balances until an unexpected circumstance occurs, like a job loss or a serious illness. When consumers begin struggling with credit card debt and the accompanying creditor harassment, the FDCPA can be of assistance.
Even though the recession may be officially over, many people--especially New York residents--carefully watch financial indicators to assess the strength of the economy and whether the rebound will continue. Statistics relating to credit card debt are commonly studied because they can provide data on how well American households are faring financially and how they are spending--or not spending--their money.
The effects of carrying large amounts of credit card debt can reach far beyond the expenses of significant interest charges or negative consequences on a person's credit score. Financial strain can be incredibly taxing and stressful for individuals and families, especially when creditor harassment begins or intensifies.
Many people assume that only people with low incomes struggle with financial problems. However, the truth and reality is that anyone can find himself in financial trouble if something unexpected occurs or if he lives above his means. The availability of credit cards have increased the risk of ballooning debt that becomes unmanageable because it gives people access to money at nearly all times. Due to the ease of obtaining credit cards, many people use them to finance a range of things, including businesses, which can lead to some significant levels of credit card debt.
At first glance, the U.S. as a whole may seem to be in pretty good shape when it comes to credit card debt. Around $32.5 billion in credit card debt was paid off by American consumers in 2014's first quarter and the default rate is currently at a relatively low level, around 3.3 percent.
Credit card debt has always and will always be an issue for people all around the country. There are plenty of Long Island residents that have struggled with credit card debt before, and there will plenty more in the future. It's just the way credit works, unfortunately. Thankfully though, there are effective strategies to get out of debt for those in need.