As of February 2019, consumer debt in the United States totaled $4.05 trillion. Individuals in North Carolina and throughout the country saw their revolving debt increase by $35.4 billion while consumer debt increased by $31.4 billion in January 2019. Non-revolving debt increased by $148.6 billion in February, which was lower than the increase seen during the previous month. Revolving debt generally means credit card debt while non-revolving debt generally refers to auto and student loans.
Mortgage debt and home equity lines of credit are not factored into overall debt totals. According to Federal Reserve data, consumer debt rose at a 4.5% annual rate. That was lower than the 5.3% annual rate in January and an increase from 4.2% in December 2018. The overall increase from January to February was about $15.2 billion less than what had been forecast.
Generally speaking, credit card debt has higher interest rates than other types of debt such as personal loans or mortgages. However, it is not the only type of debt by which a person could feel burdened. Anyone who is having trouble repaying his or her creditors in a timely manner may wish to consider filing for bankruptcy. It may allow a person to immediately discharge most types of secured and unsecured balances.
When someone files for bankruptcy, he or she is generally entitled to a stay of creditor contact. This means that creditors typically cannot make phone calls or write letters attempting to collect on a debt. Furthermore, they generally cannot foreclose on a property or repossess an asset. An attorney may explain the other benefits of bankruptcy, such as being able to convert some forms of secured debt into unsecured debt. That may make it easier to discharge or otherwise manage during a repayment period.
