According to a recent survey conducted by a consumer financial services company, nearly 30 percent of Americans have a greater amount of credit card debt than savings. This may be putting some individuals in Arizona and elsewhere in a precarious financial situation with their creditors.
The survey also revealed that many individuals who may be most likely to need access to emergency funds may be least likely to have a savings account balance that is greater than their debt balances. In addition, the source states that as many as 17 percent lack both a savings account and credit card debt.
One source states that consumer debt is currently at the highest level it has been since 2011. Some financial analysts believe the current state of some consumers’ debt and savings situation is based on the unemployment rate, high expense levels in household budgets and stagnant income levels in general. One expert states that consumer spending and personal expenses for some consumers have been reset to levels similar to those in place before the economic crash in 2008 and 2009.
Consumer debt and the lack of a sufficient savings account balance are common problems among some consumers in Arizona, and the problem with debt may be burdensome for some individuals. Bankruptcy is one option available to consumers, and it may provide financial relief to consumers who are struggling with high debt balances. Those who are struggling with high levels of personal debt may consider consulting with a bankruptcy lawyer for further assistance with their debt situation. There are certain income and procedural requirements attached to a Chapter 7 filing that the lawyer may be able to explain.
Source: MSN Money, “1 in 3 have more credit card debt than savings“, March 19, 2014