It is no secret that credit card debt can be crippling. Many people are forced to turn to credit cards to pay for day-to-day expenses when financial limitations occur within a household. While the beauty of a credit card is the ability to pay later for a purchase made today, compiling interest can be financially catastrophic.
Florida residents should beware: credit card debt is on the rise again. According to a study by cardhub.com, Americans cut back on credit card purchases during the Great Recession, but now that number is on the rise again. According to the study, consumers are trending to charge nearly $47 billion in new credit card debt in 2013.
The estimated $47 billion in new credit card debt this year would bring the total amount of credit card debt incurred since 2011 to almost $130 billion. During the first three months of 2013, consumers did manage to pay town $32.5 billion in credit card debt. The website study ascertains these payments resulted from year-end bonuses and tax refunds. Unfortunately, the $32.5 billion amounts to 7 percent less than the monies paid toward credit card debt in the first three months of 2012.
It appears that American consumers could end the year 2013 having paid down less credit card debt than they acquire. It is important for Florida residents to know that credit card debt can be a slippery slope. It is possible to become so covered over by credit card debt that payments become impossible. However, there are options available for reducing credit card debt and dramatically improving one’s financial outlook. In some cases, relief from financial strain is as easy as taking the small step to seek help.
Source:Sun Sentinel, “A bad old habit returning: More credit card debt,” Donna Gehrke-White, June 12, 2013