Many of our readers in San Diego know that times are still tough out there. While some people will say that the economy is slowly and steadily improving, others will agree that a recovery is not happening quickly enough. A lot of Californians are still having a hard time making ends meet, and people are taking the risky turn toward credit card use to cover basic expenses and pay bills.
Credit cards are typically seen as a last resort-type of financial tool for covering basic expenses, but many people nonetheless use credit cards regularly for everyday purchases. And economists look to Americans' use of credit cards for clues as to how the economy is doing. A recent report indicated that in the month of May, use of credit cards jumped significantly.
For as many observers who believe that increased borrowing means increased spending (meaning greater consumer confidence), there are just as many people who see the increase in credit card debt as a sign that the recovery may be slowing. This is evidenced by the fact that the increase in May was the largest month-to-month jump in four years, coinciding with a decrease in consumer confidence.
Debt of any kind can cause stress and friction within a family, but credit card debt is more likely to get away from someone quicker than other kinds of debt, such as student loans or auto loans. When a burdensome debt load becomes more than a family or individual can bear, they should begin to explore all of the options that are available to make the best of a bad situation.
Our firm helps people address the problem of heavy debt. If you would like to learn more about our practice and how it relates to credit card debt, please visit our Escondido bankruptcy page.
Source: The New York Times, "Consumers Take On More Debt," July 9, 2012