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A Snapshot of Consumer Debt
Credit card debt in the United States was over $1.2 trillion in late 2025. The average person owed about $6,523.00 on credit cards, with an average interest rate of 22.83%. If someone pays $150 a month on that $6,523 balance at 22.38% interest, they will pay $7,688 in interest alone. It will take about 95 months (nearly 8 years!) to pay off the whole card.
Debt often does not just come from careless spending. Many people state their credit card debt comes from emergencies or unplanned expenses, like car repairs, medical bills, home repairs, or other stressful life events such as death of a family member. Low-income individuals and families are hit harder when this happens because they often do not have savings. They must rely on credit. And when debt gets too high, many people are sued.
Debt Collection: What Happens When You Stop Paying
When someone stops paying their consumer debt, they can be sued by the original creditor (or by a company that bought the debt). The person must be served personally with the lawsuit before the court can hear the case. The person can defend the lawsuit or try to work it out with the creditor. Defenses, if any, will depend on the person’s situation. If the court decides the creditor proved its case, the court will enter a final judgment against the person, that can include the debt amount and attorney’s fees. In Florida, money judgments last for 20 years and can grow over that time because of interest. Creditors can try to collect by taking money from a person’s bank account or paychecks, called “garnishments.” Or they can try to take a person’s other property. However, some income and property are protected from collection. The person must tell the court on time if they want to use those protections.
Legal Services of Greater Miami (Legal Services) helps people who are sued or who have money judgments against them for unpaid consumer debt, like credit cards, medical bills, personal loans and car loan deficiencies. The organization represents individuals in court cases, negotiates payment plans and settlements with creditors, and defends people against wage and bank garnishments. Legal Services also helps people in Chapter 7 bankruptcy cases to wipe out consumer debt, especially when people risk serious harm from garnishments. If you are overwhelmed by debt or are being sued for consumer debt, you can get free help and learn about your rights from Legal Services. Anyone who needs help can apply online at www.legalservicesmiami.org or call the office at 305-576-0080.
