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Credit Card Debt Archives

Consumer credit balances surpass $3 trillion

Considering the low unemployment and second quarter increase in consumer spending, economic indicators appear strong in Massachusetts and nationwide. However, credit card balances continue to set records. Rates of borrowing have slowed, but the total balances owed on consumer loans like credit cards have reached a record level of $3.86 trillion.

Americans handling credit card debt well

According to TransUnion, residents of Massachusetts and throughout the United States have done a good job of paying down their debt. This is in spite of recent interest rate increases by the Federal Reserve. However, just because people are able to absorb higher debt payments doesn't mean that they shouldn't have a plan to pay off the principal balance. Those who pay 15.5 percent interest on a $5,000 balance would pay $2,286 in interest over a period of more than 10 years.

New rule for banks, credit card companies

Massachusetts consumers may have an easier time joining with others in order to file a lawsuit against banks and credit card companies thanks to the Consumer Financial Protection Bureau. A CFPB rule issued on July 10 addresses arbitration clauses that do not allow consumers to take a case to court because the companies require alternative dispute resolution. Wells Fargo is one financial organization that tried to use arbitration to shut down lawsuits.

Households struggle with rise in costs while income lags behind

While many Massachusetts college students carry credit card debt along with their student loans, it appears that most millennials are responsible with credit cards. More than two-thirds have never maxed out a credit card, and most pay their balance in full each month. However, in addition to a student loan debt that was calculated to be an average of $37,172 per student for those graduating in 2016, some students are struggling with credit card debt as well. More than 30 percent of students graduating in 2017 have made a late payment on a credit card.

Interest rate hike to affect loan payments

Massachusetts residents who have certain loans or lines of credit may see an increase in their monthly payments due to the Federal Reserve's recent interest rate hike. According to one certified financial planner, it may wise for individuals with variable-rate debt to increase how often they make payments or try to refinance their debt into loan with fixed rates.

Three ways to tackle credit card debt

Today, it is ideal to live a debt-free life. However, because many Massachusetts residents use credit cards, it is very common to carry a balance of debt. While many individuals rely on credit cards to cover certain expenses, consumer debt can quickly get out of hand. Although credit cards are often the culprit for getting a person into debt, they can also be the tools used to get the consumer out of debt as well.

How problematic is credit card debt in America?

In today's society, many residents in Massachusetts and other states across the nation seek to own what is new and in demand. Such a situation can get costly, causing some individuals to pay for these items on plastic. While it is not uncommon to use credit cards, it is becoming more and more common to carry a growing balance on credit cards, making this type of debt a problem for many Americans.

Average American's credit card debt is over $5,000

Credit card debt can be a debilitating financial problem. It can eat up a Massachusetts resident's spare income as the debtor attempts to get ahead of his minimum payments and chip away at the principal and interest he owes. Despite the challenges that credit card debt can introduce into a person's life, however, a recent news story suggests that dealing such burdensome debt is not as uncommon as one might think.

Bay Staters rank fourth lowest in average credit card debt burden

At this time of year, many Massachusetts residents are waking up to find holiday spending has caused a spike in their credit card debt. Large balances on personal credit cards can lead to serious financial challenges. But, on average, people in Massachusetts have a less serious problem with credit card debt than those in the other 49 states.

During the holiday season, keep an eye on credit card debt

As the holidays approach, many people in Massachusetts will be tempted to use their credit cards to purchase gifts and other items they could not otherwise afford. Unfortunately, retailers actively encourage excessive spending at this time of year. For people already burdened by credit card debt, holiday spending can be enough to push them into serious financial difficulty.