It comes as no surprise that credit card debt is the main source of debt among Americans. After all, the average American holds four active credit cards, each with balances over thousands of dollars. Although credit card debt is not the primary reason for Americans seeking bankruptcy, they have become the most popular source of debt looking to be relieved in Chapter 7 cases.
According to a recent study performed by Credithub.com, credit card debt among American consumers jumped by nearly 66 percent during the second quarter of 2011. That is equal to approximately 18.4 billion in credit card debt. The increase of 66 percent is compared to the same quarter in 2010 and, when compared to the same quarter in 2009, rose by a mind boggling 368 percent!
The study also reported a significant drop in consumers seeking credit counseling or other financial services. The number of Americans seeking financial and debt management services decreased by 20 percent from 2009 to 2010, and 38 percent so far this year. Not only are the credit card debt statistics staggering, even more concern should be focused on the fact that many people are failing to take action against their debt until bankruptcy is required.