Credit card debt may be a serious issue for those in Wisconsin, causing many to seek out bankruptcy protection to relieve themselves of harassing calls from creditors and overwhelming debt loads. Credit card debt is a common occurrence, with millions of Americans affected, and according to one university’s research, many people may actually die still owing significant amounts.
According to the study, individuals in their 20s and 30s have a much higher credit card debt load than those belonging to older generations. Those born between 1980 and 1984 owe on average $5,700 more than those born between 1950 and 1954; they owe $8,200 more than those born between 1920 and 1924. Younger holders of credit cards tend to pay off their debt slower and will continue to use plastic during their many decades of life.
There are several reasons for the debt load carried by younger cardholders, including stagnant wages and a rise in the cost of living. An additional reason may lie in the switch in the economy from brick-and-mortar retail businesses to online sales, which have changed spending methods. Impulse buying, for example, is more prevalent with online purchases.
The increase in debt has several negative results, however. The consumer debt level is also slowing down economic recovery in the U.S. as a whole.
Credit card debt doesn’t have to extend to the point of death. There are ways to discharge the debt, including the bankruptcy process. Those in the Appleton, Wisconsin, area can use the bankruptcy courts in an attempt to have the debt discharged completely through a bankruptcy liquidation process. Alternatively, they can proceed with a bankruptcy-protected reorganization that allows them a chance to pay off the debt without needing to liquidate their assets completely.
Source: Huffington Post, “Credit Card Debt: Study Predicts Millions Will Die In The Red,” Laura Rowley, Jan. 22, 2013