Credit Card Relief

A bad economy, slumping wages and high unemployment rates are forcing more Americans to turn back to plastic to pay their bills. Consumers recently stepped up borrowing as the economy started slumping and hiring slowed down to a trickle.

Americans took on more overall debt in May of 2011, including a jump in credit card use for just the second time since August 2008.

Households started borrowing less and saving more during these turbulent times that many are referring to as the Great Recession. A lot of people avoided credit cards in the two years since then, trying to avoid racking up high interest charges in a bad economy. But with so few jobs out there, many folks are forced to use credit cards to cover things like bills, food and gasoline.

There is a silver lining to the new credit card numbers.

In an effort to appeal to new customers, banks are offering better terms and lower interest rates with new credit cards. Credit card balances are up, but credit card delinquencies are still falling.

Payments over 30 days late are considered delinquent. In March 2011, the delinquency rate had dropped for 17th straight months.

The 90 day delinquency rate was down almost 10 percent in the first quarter of 2011 and down nearly 33 percent year over year.

If you need help getting your finances under control you can contact one of CCR’s specialists toll free at 1.866.345.3077. Or click here to check out our new easy to use debt calculator.

 

 

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