South Carolina residents who have never had debt problems before could suddenly find themselves facing trouble when going through a divorce. If one partner does not work or makes less money, paying for fees associated with dissolving a marriage and living expenses when down one salary can be difficult. This is why one could start incurring serious credit card debt.
According to the Federal Reserve Bank of New York, credit card debt rose to $700 billion last year, and as of June, total revolving debt reached $906.5 billion. A slow but steady increase in the amount of debt indicates that people are using credit cards without paying them off more frequently, although the percentage of American households with outstanding credit card debt dropped by 10 percentage points from June of 2009, when it was at 44 percent.
South Carolina residents may reflect the national trend of carrying increasing balances on their credit cards, which could create financial challenges if the Federal Reserve raises interest rates in the coming months. Experts anticipate an increase of 0.25 percent in September, which would cause existing credit card balances to become more expensive. It is believed that a 1 percent increase would cost debtors across the country a cumulative $9 billion extra each year, averaging approximately $160 per household.
South Carolina residents likely know that credit cards are handy, especially for emergencies, but usage may become excessive and be difficult to pay off. Learning some of the pitfalls of using credit cards might help avoid problems in the future.
It is likely that many South Carolina residents filed for personal bankruptcy in the wake of the 2008 financial crisis. Official figures reveal that the number of bankruptcy filing shot up by almost 30 percent in 2008 and by 35 percent in 2009 before peaking in 2010. Efforts to stimulate the economy out of recession included keeping interest rates at near historic lows, and the number of personal bankruptcy filings has been going down in recent years.