Credit Card Debt Continues to Rise - Dollar Stretcher Guest Bloggers
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Credit Card Debt Continues to Rise

by Bill Hardekopf

The latest report from the Federal Reserve shows that consumers used their credit cards quite extensively to fund their holiday shopping.

Revolving credit, which is made up primarily of credit card debt, increased at an annual rate of 4.1 percent in December. It rose nearly $3 billion to $801.0 billion. This follows a jump of $5.5 billion in November which was an annual rate increase of 8.4 percent. December was the fourth straight month of increases in revolving credit.

This could be a positive sign that consumers are more confident in the economy. But on the other hand, it could mean that people are struggling and have to rely on using their credit card to make ends meet. Consumers are going into 2012 with higher credit card debt, but the same wages. If consumers have a hard time paying this down, then we might see delinquencies and defaults start to increase by spring.

Find the latest G19 report here.

Bill Hardekopf is CEO of LowCards.com, a site that simplifies the confusion of shopping for credit cards. It is a free, independent website that helps consumers easily compare credit cards in a variety of categories such as lowest rates, rewards, rebates, balance transfers and lowest introductory rates.

Comments

 

Kassy said:

Must admit we used our cc at Christmas. But, only for traveling (hotel expenses). Then it was paid off in January. We have not paid interest on a cc in years! We seldom use our cc. We are on a cash only basis for the most part.

I think it is very true that you tend to spend more when using a cc than when paying cash. But, we have learned to discipline ourselves.

February 21, 2012 7:21 PM

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