Debt levels for all people are becoming unsustainable. Everyone, all age groups and all wealth segments have too much credit card debt.
Current consumer debt levels are significantly higher than they were at the time of the last financial crisis in 2008. As the debt bubble bursts, we will be in a great position to help consumers settle their debt.
Consumers have accumulated record debt levels during these strong economic times. They have bought what they want now with the hope of paying for it in the future. Now that the economy is weakening, we expect consumers will need tremendous help with settling these record debt levels.
We expect significant growth in debt settlement enrollments, similar to the last large economic downturn.
Due to the current economic disruptions of Covid-19 we expect a similar growth rate in the number of settlements demanded over the coming years.
Credit Card Facts
According to the Federal Reserve report from May 7, 2020, credit card debt hit a new record high at $1.066 Trillion dollars in March 2020
Credit card debt is higher than the peak debt levels from the April 2008 credit crisis
Credit Card debt is up over 6% over the past year
Delinquencies are up to 7.5% from 7.0% a year ago