Due to current economic circumstances that are currently affecting Massachusetts consumers and those throughout the United States, many are choosing to spend less each month. Spending is down because many are struggling as a result of reduced income from job loss, reduction in hours and furloughs. Others have been staying home more, and therefore, they are spending less. Because spending is down, credit card debt is low and overall amounts of debt are lower than normal for many consumers.

Between the months of April and June of this year, the amount of overall household debt decreased by 0.2%, a percentage that amounts to approximately $34 billion. Mortgages are up because the housing market is strong at the moment, but overall credit card balances are down by $76 billion. Because of government stimulus programs and other relief opportunities, there are fewer credit card accounts in delinquency.

The last few months may have provided some relief for consumers who were already struggling with debt. When spending levels return to normal, consumers may have to confront the balances they were already carrying in addition to new debt they accumulate. When household debt levels become unmanageable, Massachusetts consumers may want to consider the legal options available to them.

Credit card debt can quickly accumulate, and a consumer may be unsure of how to effectively deal with these balances. In some cases, it may be prudent to consider the benefits of bankruptcy. This process allows an overwhelmed consumer to deal with certain types of balances once for all. Once complete, it allows an applicant to move on toward a better financial future.