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Consumers struggling with credit card debt, student loans

On Behalf of | Oct 30, 2019 | Credit Card Debt

In general, most people in Pennsylvania are just doing the best they can to manage their finances. Money matters can be complicated though, and it is easier to get into debt than many realize. This is especially true when it comes to things like credit card debt and student loans.

Consumers use credit cards for a lot of different reasons. But no matter how people amass their credit card debts they almost all have something in common — trouble paying off those balances. Americans owe a collective $868 billion on their credit cards, which is nearly 5% more than in 2018. Credit card delinquencies are also on the rise.

Student loans are not looking much better. In 2017, the average college graduate left school with $30,000 in student loans. This is about how much people earn in their first year after graduating, so paying off other debts or saving money can be a real challenge. Without any savings it is even easier to fall further into debt or get behind on student loan payments. To make matters even more complicated, residents of 15 different states owe on average more than they even earn annually.

Having any type of debt can be a burden, but it is especially hard when paying off that debt feels impossible. Even when a person is making regular payments on credit card debt, it can keep growing because of interest rates. It is often necessary to take serious action in these situations. For some Pennsylvania residents, filing for bankruptcy is the solution for dealing with too much debt.