Credit card debt has been one of the contributors to the recent economic crash. The amount of debt consumers held prior to the recession was over $1 trillion. The collapse in 2008 caused consumers in Texas and elsewhere to slow down on accumulating credit debt. However, statistics from the Federal Reserve show that consumers significantly increased their credit card debt in May. It was the most credit card debt consumers had taken on in a single month since the beginning of the recession in December 2007.
During May, individuals increased their total amount of credit card debt by $8 billion, to a total of $870.2 billion. The Fed says that reflected an increase in outstanding revolving debt of 0.93 percent from the month before.
The growing mountain of debt among U.S. consumers reached a pinnacle in July 2008 with more than $1 trillion owed to credit card companies. Then, after the financial crash in the fall of 2008, lenders began charging off credit card debt at an unprecedented rate. At the same time, they stiffened their credit worthiness standards. In the three years that followed, the total credit card debt in the nation decreased by more than $150 billion. However, March 2011 saw credit card debt beginning to increase again. And 14 months later, debt of almost $15 billion has been added back to consumer credit accounts.
Taking on more credit card debt is not the ideal for anyone. Sometimes it happens due to economic circumstances that are beyond our control. When Texas consumers get into such a dilemma it can lead to defaults and credit card companies suing in order to collect debts. Faced with that pressure, many legitimately seek relief through bankruptcy, which can help reestablish a solid financial baseline from which to start over.