Boost in Colorado Springs Consumer Debt Highest in a Decade

USA Today is reporting that consumers increased their debt in November by more than $20 billion, the largest monthly increase in a decade.

What this shows our Colorado Springs bankruptcy lawyers is not that the economy is in a better position than it has been in years, but more likely that consumers used their credit cards more during the winter holiday season.

For those whose expenses are in tough shape, bankruptcy in Colorado Springs can help them get out from the predatory practices of credit card companies. These businesses consistently send out invitations for consumers to get their plastic, even if it’s not in their best interests.

They offer “perks” and “rewards” that are highly unattainable or require consumers to spend big and pay it off quickly. And if a person misses a payment or pays it late, they are instantly slammed with late fees and hidden fees that consumers didn’t even know existed. Companies can then try to increase interest rates, just another tactic to try to keep consumers in their grasp as they battle with debt.

USA Today reports that consumers added $20 billion in debt in November, the biggest monthly jump in nearly a decade. Not including mortgage debt, Americans owe $2.48 trillion. Consumer credit increased at an annual rate of 10 percent, while credit card debt increased at an annual rate of 8.5 percent.

The November 2011 increase was the largest since November 2001, when consumers borrowed $28 billion just a few months after the September 11 terrorist attacks.

Some analysts believe that this shows consumers are feeling more confident in the economy, which has had modest gains in recent months. Our Colorado Springs bankruptcy lawyers believe it may also have to do with the ongoing unemployment struggles that many Americans are dealing with. The less money they have, the more they rely on credit card loans.

Consumers should be glad to know that filing for bankruptcy in Colorado Springs can wipe out credit card debt, regardless of the amount. This is an important tool to utilize for consumers who are behind on payments and don’t see help in sight.

If you are struggling with debt and need to speak with an experienced Colorado Springs bankruptcy lawyer, contact attorney Stephen H. Swift at 866-893-2440 or 719-359-8179 for a free initial consultation.

Additional Resources:

November boost in consumer debt is most in 10 yearsby Michael Winter, USA Today

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