Bank Card Delinquencies Near a Twenty Year Low
The American Bankers Association has reported that credit card delinquencies have fallen to 2.44 percent, well below the fifteen year average of 3.82 percent. This is good news for two reasons. First, it means that the economy is improving. After all, good intentions and belt-tightening won’t help someone pay their debts if they can’t find a job. Secondly, it means that society learned some sober financial lessons during the recession. Profligacy is out, evidently, and self-denial is in.
What does this mean for bankruptcy filings? Well, the numbers are down, naturally, but not to historic lows, just to historic normals after a few years in the stratosphere.
But it would be overly simplistic to look at the ABA’s figures and assume that only 2.44 percent of all bank card users are in financial trouble or should consider filing bankruptcy. Maybe you find yourself in the lauded 97.66 percent of non-delinquent card users but feel left out of the national pat-on-the-back that these kind of reports generate. The question shouldn’t always be “Am I current on my bills?”. Sometimes it is more helpful to ask, “Is my current financial situation sustainable?” If you’re simply shuffling loan balances from one card to another or making minimum, or interest-only, payments, you shouldn’t exempt yourself from considering bankruptcy as a possible option.
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For more than 20 years, the Sasser Law Firm has been helping individuals and business owners sort through financial hardships to see the light at the end of the tunnel. Our North Carolina bankruptcy attorneys are all board-certified specialists, which means we have passed a complex exam, undergone a thorough peer review, and continue to earn legal education credits in this ever-evolving area of law.
