A few years ago, when the recession was just starting to hit, consumer credit card debt was at an all-time high. At no other time in history was there such a cavalier attitude towards debt, and it was clear to many financial experts that this lifestyle of debt could not continue forever. As the economy began to collapse, many people realized that their unsustainable lifestyles were leading them down roads that they did not want to follow.
The good news is that consumer debt is finally starting to fall and more people are beginning to realize that they must live within their means, without carrying a credit card balance from month to month. Unfortunately it has often taken a Minneapolis bankruptcy for some to recover from this lifestyle. What does it mean for the economy that consumers are, on average, carrying less debt?
Credit card companies make the majority of their money from fees and interest. With fewer consumers carrying balances and using credit cards, it is harder for the credit card companies to make the profits that they are used to. These companies have different ways of dealing with this lost revenue, some increase the interest rates and fees for existing customers, while others are looking at ways to b ring in new customers to try to replace the lost consumers.
If you are considering going credit card free, but are buried under a mountain of debt. You may be forced to file for a Minnesota bankruptcy. Although it can be a long process, sometimes this is the only way for you to start on a new financial path and relieve yourself of the burden of debt that you have been carrying around for years. The feeling of freedom that you get is worth all the work it takes to get yourself out of debt.