As per the new numbers that have been released by the Federal Reserve in the month of January, it shows that the consumer credit card debt has increased by 3% to $958 billion in the month of November, 2012. The holiday shopping season is actually responsible for the rise in the credit card debt as the consumers and the credit card holders swipe their cards while making every single purchase. Reports suggest that the Americans incurred $14.5 billion in new credit card debt in the 3rd quarter of 2012 and while these numbers show an uptick in consumer credit card expenses, you would be rather happy to know that this figure is 14% less than the same quarter during the same time of 2011. As the credit card debtors are raising day by day, the debt consolidation firms are also gaining momentum since most of them are trying to get out of their debt burden with the help of such professional debt relief firms.
Based on the excessive holiday shopping that the Americans did with their credit cards, the families will probably face a huge bill in 2013 and this is something that is being warned by the financial analysts. The third quarter calculations show that the average American household owes $7865 in credit card debt and the personal finance experts suggest the Americans to be careful about their personal financial state and to resolve to lead a better 2013.
Rising credit card debt – Life in plastic, it’s fantastic!
According to the studies, credit card debt is actually the third largest reason for the indebtedness of the American households and the amount averages to about $8193. However, there are many people who even owe a huge amount on their mortgage loans and auto loans and the student loans. Around 48% of the households carry a huge credit card balance, the average debt is whopping at $16.018 during November, 2012 and this saw an increase of 0.58% since October, 2012. The statistics show that credit card debt is holding steady but whether this is for good is a thing of debate.
High consumer spending puts the economy on a positive track and this will also lead to better jobs and better income level which will again lead to higher spending. If the wages and employment are improving slowly, this might well be an indication that the families are borrowing heavily to make ends meet and this is certainly a bad sign for the households and for the economy. The credit card debt experts suggest people to take some careful steps about their debt so that they don’t keep drowning in the sea of high interest debt burden and keep raising their personal debt ceiling.
There are different ways to deal with your credit card debt and when you’re going through a confusion regarding the debt relief options, you should immediately get in touch with your creditors and ensure starting off with a hardship plan through which you can get out of your debt burden and help boost the function of the economy.