Florida ranks 3rd in the nation for credit card debt charge-offs

On behalf of Bankruptcy Law Firm of Clare Casas on Friday, October 18, 2013.

Credit card debt referred to as charged-off debt relates to debt that the lender deems to be irretrievable. When a Florida resident fails to pay his or her credit card bill for any number of reasons, the credit card company will eventually classify it as a charge-off. Credit card debt charge-offs will remain on one’s personal credit report for a period of seven years after the charge-off date. This will have serious repercussions for an individual’s credit rating score.

During the second quarter of 2013, some states have reported a significantly higher amount of credit card debt that is charged off as compared to other states. Florida, for example, ranks as the state with the third highest amount of charged off debt. Florida credit card customers had approximately 5.52 percent of their outstanding credit card debt charged off during the third quarter.

There does, however, appear to be some good news. Even though Florida has appeared on the top ten list of states with the most charged off debt for the last three years, the percentage of charge offs appears to be falling for certain states as compared to previous years. This could be a sign that the nation-wide economy is improving.

In the meantime, Florida residents who are suffering under a mountain of credit card debt can get assistance in resolving that debt. By employing specific legal strategies, some people may be able to achieve debt relief. Others may find the best solution is to seek the protection of the Bankruptcy Court. Unpaid credit card bills are most certainly a problem, but credit card debt is not an insurmountable problem from a legal perspective.

Source: Yahoo Finance, The States With the Most Charged-Off Credit Card Debt, Christine DiGangi, Oct. 14, 2013