Consumers throughout the U.S. are borrowing again, but many are reluctant to borrow on credit cards. According to statistics from the Federal Reserve Board, the amount of outstanding credit card debt dropped to $795.5 billion, the lowest amount in over six years. Though there was a slight increase in December of 2010, the $4.2 billion drop in January offset that gain. Since January, the pace of the decline has slowed, but it is continuing its downtrend.
What is causing the decline in credit card debt? While one may wish to attribute it to consumers growing smarter about racking up credit card bills, it may be caused by other factors as well. The decline may also be from banks writing off delinquent balances, scaling back credit limits and making it more difficult to qualify for credit cards in the first place.
So where are Americans borrowing, if not on credit cards? Federal Reserve Board reports from January show a rise of $9.3 billion in outstanding non-revolving consumer debt, reaching a record peak of $1.617 trillion. Non-revolving debt, also known as closed-ended debt, is based on credit that cannot be extended again after payment. Car loans and student loans are both examples of non-revolving debt.
Whether you are dealing with secured debt, credit card bills or other any other type of debt, take a proactive approach and address your finances with the help of an experienced debt relief attorney. Jacoby & Jacoby is a Long Island law firm that offers solutions to debtors throughout the area who are faced with foreclosure,
wage garnishment and the many other serious situations caused by overwhelming debt. The firm offers solutions such as
loan modification, foreclosure defense and collection lawsuit defense to help debtors find their way.
Contact a Long Island bankruptcy lawyer at the firm today to discuss your financial situation and options.