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Massachusetts sees increase in consumer credit usage

A difficult part of struggling with debt is the ubiquity of credit usage. Credit can be both a friend and an enemy to someone who needs financial help. When things get out of control, a Massachusetts resident can feel like there are few options. But, there are several choices to consider, including personal bankruptcy. This can help clear an amount of debt, organize payments and help eliminate financial challenges.

A new report issued by the Federal Reserve states that Americans have been increasing their credit card spending. Consumer credit rose to $3.18 billion with an estimated growth of 10.2 percent. Consumers across the United States, including those in Massachusetts, saw revolving credit increase by $8.8 billion. The numbers could signify newfound confidence in employment and the increased value of homes. Some banks are increasing their loan prospects for auto purchases and consumer credit. This relaxation on requirements could allow some consumers to fall further into debt.

An increase in consumer spending can lead to an increase in debt. While a bank or financial institution may give someone an option for more credit, this can lead to an increase in overall debt. It can be hard to deal with a significant amount of debt, even if employment prospects are getting better. Personal bankruptcy, however, is an option for those who cannot pay off the interest on their debt, and filing for bankruptcy can help absolve credit card debt and other unpaid bills.

Financial responsibility is an important for Massachusetts residents. Yet, sometimes life's circumstances prohibit individuals from securing financial stability. Personal bankruptcy can be beneficial, stopping foreclosure on a home, ridding an individual of credit card debt and helping someone purge themselves of harassing creditors. While consumer credit amounts continue to grow, there are options for those who have too much debt.

Source: Financial Buzz, "Rise in Credit Card Use Bolsters US Consumer Credit," Michael Baltro, June 12, 2014

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