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Are residents of Massachusetts using their credit cards less?

Credit is an important tool in this nation's economy. Unfortunately, here in Massachusetts, many people may find themselves in poor credit situations. Debt by itself can be a tool, but it can also be a tomb for those feeling surrounded by it. Borrowing entails a certain level of responsibility, but many banks and lenders charge very high interest rates that can make some feel overwhelmed by credit card debt.

On this note, the Federal Reserve reported the Americans spent less on their credit cards for the fourth straight month in September. The data also showed that borrowing debt had increased in student and auto loans. Credit card debt levels, on the other hand, dropped $2.1 billion in September compared to a drop of $885 million in August. Student loans and auto debt rose by 8.5 percent compared to one year ago. On the macro level, credit card debt levels for Massachusetts' residents is about the same it was a year ago.

One of the largest components of credit card use is consumer debt. which can be a large burden that is difficult to overcome. Fortunately, there are some tools for those who feel inundated by a deluge of credit card companies, high medical bills or intimidating debt collectors. One of those tools is bankruptcy. Depending on one's eligibility, it can be a useful device to stop credit collection and consolidate payments while paying off debt in a manageable way.

Cutting back on consumption is one road to becoming debt free. Unfortunately, some people are in situations that are impossible to get out of without help - even if, overall, credit card debt is down nationwide. Filing for bankruptcy can be the first step to handling one's obligations in a less stressful manner.

Source: Daily American, "Americans cut back on credit card use in September," Nov.7, 2013

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