The economy has slowly been getting better since the Great Recession. At this point, home values are increasing and the unemployment rate is not as bleak as it once was. Granted, the unemployment rate is still higher than what it is during a stable economy, but it is still better than it has been in the past four and a half years.
According to TransUnion, the credit card delinquency rate is also the lowest it has been since 1994. In fact, the delinquency rate of at least 90 days overdue fell to 0.57 percent in the second quarter. This is the lowest the delinquency rate has been since 1994 when it was at 0.56 percent.
In addition, even though more jobs have been added and consumer confidence in the economy is starting to grow, many are still reluctant to take on new high-interest credit card debt. At this point, according to the Federal Reserve, credit card debt has dropped to $2.7 billion. This is significantly lower than the peak reached in July 2008.
Job growth has also remained steady, with 192,000 jobs added each month this year. The unemployment rate was also at 7.4 percent in July, which is lower than the 7.6 percent reported in June.
However, it should be noted the unemployment rate is still substantially higher than the 5 to 6 percent rate that is seen during stable times.
Overall, what all of this goes to show is that while economic times are getting better, the economy is still not back to what it used to be.
While some of those living in Minnesota might be benefiting from the uptick in the economy, there are still those who are struggling. And, while we talked about the decrease in credit card debt, there are many who still have massive amounts of credit card debt and other debts and do not even know where to begin in order to pay it off.
In the end, the message is that while things are looking up, times are still tough. Those who are struggling -- be it with credit card debt, medical bills or the threat of foreclosure -- know that there are options. This is where a bankruptcy attorney can step in to talk about different debt relief in order to see what would work best for an individual's circumstances and goals.
Source: ABC News, "Average Credit Card Debt Per Borrower Dips in 2Q," Alex Veiga, Aug. 13, 2013