Since the recession began in 2008, millions of Americans have had to cope with limited financial resources and growing debt obligations. Faced with medical bills, home foreclosure proceedings, and mounting credit card debt, many people have turned to a bankruptcy lawyer to achieve a fresh financial start. In addition, the credit card industry has seen several notable changes in the way that consumer credit cards are used.
Credit card use among young Americans declines
According to a June 2013 Forbes article, twice as many young Americans are living without credit cards since the recession. Approximately 16% of consumers between the ages of 18 and 29 hadn’t used a single credit card at the end of 2012. As expected, credit card debt among this age group declined by a third, dropping from an average of $3,073 to $2,087 per person. Researchers believe this new trend in credit card use is the result of young Americans watching their parents cope with debt following the recession.
Credit card delinquencies decline
More and more consumers are beginning to pay their credit card bills on time. As a result, credit card issuers are writing off considerably fewer accounts. The delinquency rate is the percentage measurement of credit card accounts that are at least 30 days past due, and between April and May 2013, delinquency rates declined among the six top credit card issuers.
Credit card reinvestment among banks increases
Since 2011, five major domestic midsize banks began increasing investment in credit card programs. The consolidation of credit card businesses coupled with numerous bank combinations has drastically changed the credit card market’s competitive landscape. As current legislation requires credit card pricing practices of large card issuers to be consistent with those of small and midsized financial institutions, more and more midsized banks have begun to enter the market.
Burr Law Office understands the stress that accompanies debt problems. We provide affordable bankruptcy lawyer services to help clients eliminate or consolidate their debt. For more information, give us a call at (877) 891-1638.