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Konn LLC Georgia Debt Settlement Lawyer
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Why is Credit Card Debt So High?

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Consumers are continuing to spend high amounts of money on their credit cards and are going deeper into debt, according to a recent report from CNBC. As that report emphasizes, household debt increased again over the last quarter. Much of that debt is associated with credit cards and rising credit card balances. At the same time, credit card delinquency rates are also rising. From this time a year ago, about 7 percent of credit card balances have transitioned to delinquency. More borrowers are also at risk of delinquency as they continue to spend but cannot afford payments. In total, American credit card debt is now at $1.21 trillion — the highest it has been.

Why is credit card debt so high, and what are your options if you cannot repay your balances?

Rising Credit Card Debt in Georgia and Across the Country

According to the CNBC report, the rising rates of credit card debt are not entirely surprising to commentators, given that many households “largely spent down their excess savings while the cost of living jumped” during the pandemic. As a result, “a sharp rebound in credit card balances” occurred and has continued. During the pandemic, the report explains that many consumers also “may have overextended themselves.” Many were without work. Others were spending more to help smaller businesses survive. Now, with inflation, costs are even higher.

About 46 percent of credit card holders in the US do not pay their balances each month. Many of those debtors are also delinquent. Or, even if they are making minimum payments each month, their debt is accumulating quickly due to very high credit card interest rates. It would only take one unexpected event, CNBC suggests, for those debtors to be in a dire situation. Such events include loss of a job, reduction in income, or a medical situation.

Are You Eligible to Settle Your Credit Card Debt?

If you are one of the millions of people with credit card debt and you are struggling, could you be eligible for debt settlement? Debt settlement is one way of getting out of debt. In this process, your lawyer negotiates a sum with the creditor for you to pay. That sum is only a percentage of what you actually owe. In exchange for making that payment, the creditor agrees to forgive your remaining debt.

To be eligible for debt settlement, you will need to be seeking this option for unsecured debt. Creditors are also much more likely to settle if your account is delinquent but has not yet been sold to debt collectors.

Contact Our Georgia Debt Settlement Attorneys Today for Assistance

Are you considering your options for dealing with your credit card debt? You may be an excellent candidate for debt settlement. If you have the ability to make a payment of a portion of your debt to your creditors, you should seek advice from one of the experienced Lilburn debt settlement lawyers at Konn Law Firm LLC today about moving forward with debt settlement negotiations. You may be able to get out of debt entirely and get a fresh start financially. Contact our firm today to discuss your financial circumstances and to find out more about your debt settlement options in Georgia.

Source:

cnbc.com/2025/08/05/ny-fed-credit-card-debt-second-quarter-2025.html

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