Americans are drowning in credit card debt

February 16, 2018 - 8:55 am
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(WWL.com)

We seem to be drowning in debt.  And Louisiana appears to be America's capital of past due debt, with almost half of residents of the bayou state have debt that has gone into collections.  

Blame it on stagnant wages over the last decade, according to Jose Bautista, Professor of Economics, Division of Business at Xavier University.  

"Over the past decade we have pretty much seen wages stagnate without the country," Bautista said.  "Without increased purchasing power on the part of consumers, we have no choice, other than to go into debt." 

Total household debt soared to a record $13 trillion dollars in 2017, according to the latest data released by the Federal Reserve Bank of New York’s Center for Microeconomic Data.

"When you go into debt, the first resort, which should be a last resort is credit cards," he added.    

Bautista said the interest rates on credit cards are very high.

"And so therefore, people go into debt by getting credit cards and then their ability to pay back the principal on those credit cards becomes problematic," he said.  

Almost half the residents of Louisiana have debt that has gone into collections.
 

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