Consumers in Florida and all around the U.S. have had to come to grips about a lot of economic truths over the past few years. Jobs aren’t always available. Home values do not always go up. Credit cards are dangerous in certain hands and/or economic environments.
CNN Money reports that it’s possible that some consumers haven’t thoroughly understood at least one of the above-mentioned points. Credit card debt can be a dragging weight on the ankles of many consumers. The debt can lead to credit score problems, as well as a downward spiral into complete financial hardship. Should we be worried about consumers, now that research shows that credit card debt is on the rise?
According to sources, U.S. consumers racked up more than $18 million in credit card debt in the second quarter. Alone, that fact doesn’t mean much. But compared to the same time last year, that’s a 66 percent increase credit card debt. That’s a great increase in consumers’ reliance on credit cards, and that’s just in one year.
The level of credit card debt in the U.S. is still not at its high point where it’s been during this recession, but some financial professionals are worried. Credit card companies are now making it easier again for people to get credit cards, which could be why the debt recently increased. But that point also could mean that past studies showing reduced credit card debt were less related to consumer wisdom and more so due to stricter lending.
We will continue to follow debt trends. It will take continued, future research to determine a more sound theory regarding consumer behavior and whether there is anything to worry about with regards to credit card use and lessons learned.
CNN Money: “Credit card debt on the rise, again,” Blake Ellis, Sep. 22, 2011