The average American's credit card debt has risen over the past and but fewer people are making timely payments, according to TransUnion, one of the nation's three major credit bureaus. The average balance carried on a credit card between July and September was 4.9 percent higher than the figures for the same quarter in 2011, with $4,996 as the average credit card balance.
At the same time, fewer people are making their credit card payments on time. The rate of late payments rose by 0.75 percent, up slightly from 2011. This figure, while higher than a year ago, is still relatively low, indicating that consumers may still be more conservative than in previous years with acquiring and using credit. These numbers may also reflect seasonal factors such as vacation spending.
One belief among economists is that the new figures indicate a trend among banks to extend credit to less-than-creditworthy customers. As the customers with the highest credit ratings withdraw their use of credit, those customers who wish to take out new cards and spend using those cards may have overall lower credit scores.
Those who file for bankruptcy can free themselves from the problem of delinquent credit card debt. However, these debtors should be careful to work with a bankruptcy attorney to make a plan for future spending as well as discharging current debt. By taking advantage of the fresh financial start debtors obtain from bankruptcy, individuals can begin to make judicious use of credit card debt and rebuild a strong credit rating.
Source: The Consumerist, "Credit Card Debt Is Up & We're Not Being So Good About Paying It Off," Mary Beth Quirk, Nov. 19, 2012
At the same time, fewer people are making their credit card payments on time. The rate of late payments rose by 0.75 percent, up slightly from 2011. This figure, while higher than a year ago, is still relatively low, indicating that consumers may still be more conservative than in previous years with acquiring and using credit. These numbers may also reflect seasonal factors such as vacation spending.
One belief among economists is that the new figures indicate a trend among banks to extend credit to less-than-creditworthy customers. As the customers with the highest credit ratings withdraw their use of credit, those customers who wish to take out new cards and spend using those cards may have overall lower credit scores.
Those who file for bankruptcy can free themselves from the problem of delinquent credit card debt. However, these debtors should be careful to work with a bankruptcy attorney to make a plan for future spending as well as discharging current debt. By taking advantage of the fresh financial start debtors obtain from bankruptcy, individuals can begin to make judicious use of credit card debt and rebuild a strong credit rating.
Source: The Consumerist, "Credit Card Debt Is Up & We're Not Being So Good About Paying It Off," Mary Beth Quirk, Nov. 19, 2012
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