Although a surprising number of Americans were able to actually save money and restrict their credit card usage during the lockdowns and shutdowns associated with COVID-19, recent news states that such behavior on the part of consumers in the US may not last. As credit card debt starts to edge up again, Americans may be making up for lost time.
“Lots of people made lots of progress paying down debt and we would not have thought that at the outset of the pandemic,” said Ted Rossman, senior industry analyst at CreditCards.com.
This does not mean that credit card debt is down as a whole by much though, and it is important to remember of course that consumers were busy spending healthily prior to the onset of COVID and all the accompanying repercussions. Currently, the average amount of household credit card debt hovers at $5,000.
“I don’t think it goes back to 2019 consumer loss levels, the consumer is in pretty good shape,” said Stephen Biggar, who covers financial institutions at Argus Research. “But at the lower levels there is always churn. Every day it is harder to make ends meet and inflation is a big topic from car prices to home prices to food prices and gas prices. Everywhere you look it’s problematic for lower income levels. The default rates moves back up.”
If you are worried about delinquencies regarding over credit card debt or other issues that are especially typical right now due to COVID, like medical debt, speak with an attorney as soon as possible. This is even more important if you are being sued. If you have already received a summons and complaint for a collection lawsuit from a creditor, it is in your best interest to handle the problem expediently. Even if you feel like you don’t have anything to lose right now, that certainly may not be true in 20 years, which is exactly how long a default judgment could be good for in California.
Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (844) 431-3851, or email us at email@example.com.