Minnesotans face credit card debt, bankruptcy
Despite recent actions by Congress and the Federal Reserve, consumers across the country are still facing problems relating to credit card debt.
In Minnesota, credit card debt has been named one of the leading causes for the state’s recent increase in bankruptcy filings.
In 2010, nearly 22,000 Minnesotans filed for personal bankruptcy protection. This represented a 4 percent increase over 2009’s figures and the fourth consecutive year the number of filings has risen, state television news provider KIMT reports.
“I say over and over again to people you should of seen me one or two years ago, and most people have really suffered and worked hard and tried to pay before they finally figure out that they just can’t,” Austin, Minnesota, bankruptcy attorney Bill Bodensteiner told the news source.
Bodensteiner says many of the filings are related to poor credit card management and rising medical costs, according to KIMT.
In recent months, many consumers began switching to checks, debit and cash for purchases. However, credit card companies have recently posted big fourth quarter revenues spurred on by increased borrowing.