People in Texas may be deeply concerned about what to do if they receive a letter from a debt collector threatening a lawsuit. Their concerns may escalate if they learn that a case has been filed against them. This situation adds stress to the lives of people who are already struggling to pay their bills and facing calls from collection agencies. Over 70 million people across the country have dealt with collectors, and a full one-fourth of those felt threatened during their dealings.
In Texas and across the United States, 20% of Americans do not know whether they owe money on their credit cards, and 30% have no knowledge about their credit line interest rates. A current U.S. News & World Report survey also shows that 24% of Americans have debts equaling more than $10,000. Furthermore, 25% of the survey participants indicate they have revolving balances as high as $2,000 on their credit card accounts. In addition, 16% of the participants do not know how much money they owe on their credit cards.
A study conducted by Consumer Reports magazine found that 30 percent of Americans have at least $500 in outstanding medical bills. People in Texas who are struggling to pay medical debts might see their credit scores negatively impacted. Medical debt is handled differently than other outstanding debts when it comes to a person's credit score. It is generally reported to credit agencies later than other debts because the healthcare provider does not do the reporting directly.
Many Texas consumers face seemingly insurmountable debt.. They may have credit card bills with balances that got out of control, or they may have found an unexpected illness saddling them with medical bills. They struggle to pay their bills each month and face creditor calls, late fees and high interest rates. While personal bankruptcy could present a way forward out of this situation, many people are concerned about the effects of bankruptcy on a credit score. Of course, a bankruptcy filing is a serious negative entry on a credit report and will affect a person's ability to access new credit.
People in Texas and across the country owe an ever-increasing amount of debt. In February, consumer credit rose less than expected, but still grew by $15.2 billion. Outstanding debt had been predicted to rise by $17.5 billion in February, according to the Federal Reserve. This increase marks a 4.5 percent growth. Every month, the Fed tracks the amount of debt Americans owe. It grew by a smaller amount than it did in January, when outstanding credit obligations grew by 5.2 percent. However, it was larger than the December 2018 growth, which was a 4.2 percent increase.
Some hospital patients in Texas may find themselves unpleasantly surprised when they receive their medical bills. In some cases, certain treatments or services are not eligible for in-network insurance coverage. This can mean that some patients get hospital bills that they cannot afford to pay.
Many Texans are struggling with significant amounts of credit card debt that they find it difficult to repay. While some people are able to pay off their credit card bills each month and avoid carrying a balance, those who do carry a balance often extend it out over a year or more. According to one report, 56 percent of people who carry balances on their credit cards maintain them for more than a year. Around 23 percent have remained in debt for three years or more while 14 percent have carried their debt for five years or more.
An increasing number of people in Texas are facing significant credit card bills that they may find themselves unable to pay. This is especially true after a change in financial circumstances, such as the loss of a job or a serious illness that incurs medical bills. Across the country, 83 percent of American adults have at least one credit card, but the average person has three. There is over $1.04 trillion of credit card debt in the United States, an increase from $857 billion in 2013. On average, American consumers have $5,331 in credit card debt in 2019, and most people don't pay off their full bill every month.
Bankruptcy is a powerful financial tool for people in Texas who have burdensome debt, but they aren't a magic shield that protects from future financial woes. Many individuals find themselves in a situation where they may want to file for bankruptcy a second time. While getting a second bankruptcy has certain limitations and waiting periods, it is possible for some. For many, however, there may be other ways to relieve debt.