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Credit Card Defaults | Highest in Five Years

Credit Card Default Rates Highest in Five Years

As CNBC reports, credit card default rates are going up for the first time in five years. February was a big month for credit card defaults. Although CNBC maintains that the default rate is still relatively low historically, this increase is the first increase we’ve seen since July of 2010. This means that more Americans are defaulting on credit cards right now than at the height of the recession.

And credit card debt is not the only problem. Credit card debt is just a part of the larger picture of household debt. “Household debt levels hit their highest marks in 2014 since the Great Recession. For the year, household debt rose 2.9 percent to $13.5 trillion, which was the biggest annualized gain since 2007, when the level rose 7.1 percent just before the financial crisis struck, according to Fed data.”

If you have significant credit card debt and are about to default or have already defaulted, contact a debt settlement attorney ASAP. An experienced debt settlement attorney will handle all contact and communication with your lenders so that you are not harassed by phone calls, and that attorney will also negotiate for reductions in balances owed so that you can get out of debt faster and for less money. Don’t just default and ignore the problem.

Author:  Kevin Fallon McCarthy

 

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Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.