Credit cards have a lot of benefits. They can help consumers manage large purchases or bridge the gap between paychecks. Many cards offer even offer rewards, such as redeemable award points, cash back or airline points. The news is not all good, though, as interest rates can cause credit card debt to quickly spiral out of control.
Some Florida consumers might already know that credit card debt recently hit $1 trillion. This news by itself might not be entirely negative, especially since experts believe that Americans are confident in the economy and willing to borrow more. About 66 percent of people in America believe the economy is in generally good shape, which is a 17 percent increase from 2009. While this might be a positive for the economy, some people might be inadvertently taking on more than they can handle.
Interest rates are going up, and the annual average percentage rate is nearly 17 percent. That's approximately 4 percentage points higher than it was just five years ago. This can make it difficult to pay off credit cards, especially for consumers who carry their balances over from month to month. Consumers are predicted to spend $122 billion on credit card interest alone in 2019.
Credit cards are not inherently bad, but the average person in Florida can easily become trapped by debt and added interest. It is those interest rates that make getting out of credit card debt especially difficult. For these individuals, considering methods such as debt consolidation and bankruptcy can be helpful when determining the most appropriate method for getting rid of overwhelming debt.