Credit card spending is up, but so is consumer debt

Here we are in a new year and it seems that credit card debt is still on people’s minds. New research has shown that the nation is still struggling. On average, 22 percent of Americans will be burdened with credit card debt this year, and as many as 7 percent will continue to pay off Christmas purchases well into next year.

This holiday season saw an increase in spending of about 5.5 percent compared to last year. Most of that came during the first fifty days before Christmas. Retailers tend to benefit from increased credit card use because it usually means people are spending beyond their budgets.

Many shoppers have pledged to spend only cash this holiday season, but unfortunately, this requires a huge amount of budget that most people can’t manage. The ones who were able to pull this off were people who were already in control of their debt.

The average person’s credit card debt increased from the previous quarter. Nearly thirty-three states reported an increase in average daily balances, with the highest reporting $4,965 per card. It has also been reported that there has been an increase in card issuance of up to 19.1 percent. This shows significant growth despite the weak economy.

All of these data present conflicting views of our economy. Some people spent more money during the holiday season because they felt the economy was picking up, while others were still struggling to break even and had to lean on their credit cards. Essentially, you have some people who already had good credit and are doing a good job of managing it. These people tended to pay off their debt more. Then there were the people who saw a big spike in their debt, mostly from people who lost their jobs and had things like medical emergencies and other unexpected expenses that forced them to turn to credit cards to get by.

The city that showed the highest average debt in December was San Antonio, which had an average of $5,177. This is twenty one percent above the national average. They were followed by Jacksonville FL, which has $5,115. As a side note, they were also one of the cities with the lowest average credit scores. Atlanta ranked third at $4,960 followed by Honolulu at $4,939.

All of this data shows that there are still thousands of Americans struggling with credit card debt despite reports of increased spending. There are fewer and fewer ways for consumers to get their debt under control and get back on the path to financial freedom. What makes it worse is that many people don’t know where to turn. Too often, people seek the advice of agencies whose only goal is to get what money they can from the person.

Even with the new regulations put in place by the Federal Trade Commission, there are still debt consolidation companies that prey on people in dire straits. Many of these companies continue to swindle people out of up-front fees under the illusion that they are being represented by a law firm.

As noted in several pending class action lawsuits, most of these debt settlement law firms are nothing more than a shell for a debt settlement company that is actually doing all the work. In many cases, the debt settlement attorney does not actually represent their clients in legal matters, with the exception of settling their debts. The bottom line is that you don’t need a lawyer to settle your debt, and having a lawyer do it for you doesn’t reduce any of your risk or affect your credit.

People who are falling or about to fall behind on their credit card payments, or people who are essentially stealing from Peter to pay Paul, should seek out a professional debt analyst who can review all programs with you. of debt consolidation that exist. you.