Overdrafts and credit card debt faced by many in Florida

On behalf of Bankruptcy Law Firm of Clare Casas on Tuesday, June 3, 2014.

United States consumers owe close to $17 trillion in debt. The largest component of consumer debt is mortgage debt, with student loan debt taking up the second place slot. Credit card debt and motor vehicle loan debt are in the third and fourth places. Given that approximately half of consumers in Florida have credit card debt, while 35 percent have an overdraft, it becomes clear that consumer debt is a current problem in the United States.

A recent survey indicates that many consumers are not financially literate. The findings also indicated that Americans are spending millions on costs because of complex financial products with difficulty reading the fine print. Thirty-five percent of consumers indicated that, during the last 12 months, they have gone into overdraft. Over 50 percent of consumers indicated that the reason for them going into overdraft was forgetfulness, while approximately 47 percent gave shortage of money as their reason.

Bank overdraft fees can cost a consumer up to $35 per month, while a consumer can pay more than 15 percent interest on an outstanding credit card balance. However, by doing research and carefully considering the different products, consumers may find ways to save money and reduce interest rates on credit cards. Sometimes it may even be prudent to transfer the outstanding balance on a credit card to another account.

Consumers with long overdue credit card debt or big amounts outstanding may find that they do not know where to turn. When it seems that all avenues have closed, a debtor in Florida may find that, in order to stop creditors, one may benefit by obtaining advice on the possibility of filing for bankruptcy. Bankruptcy can often provide an opportunity for a new financial beginning.

Source: pfhub.com, “One-third of Americans have overdraft, nearly half carry credit card debt“, Andrew Moran, May 27, 2014