It is hard to believe that the year is almost half over already. For some people, 2014 has so far been the year when they are finally getting their family finances in order after several years of a tough American economy. This can include paying back credit card debt.
In fact, according to a recent report, in just the first three months of this year American consumers repaid about $32.5 billion to credit card companies. That probably sounds like a huge number to most of our Escondido readers, but, as the article points out, that amount is actually a lower amount of credit card repayment than what was repaid in the first three months of 2013, by about 1 percent. And, to make matters worse, the number from this year is actually 5 percent lower from the amount repaid during the same period in 2012. What does all of this mean? Well, it appears that the repayment of credit card debt may actually be slowing down, which could signal that once again Americans are starting to face financial challenges.
In reality, if Americans are starting to have problems paying their bills, their credit card debt might actually increase. Many people turn to credit cards when their income doesn't meet their expenses, and as a result down the line they find themselves making only the minimum payments when the credit card statements come in the mail.
Millions of Americans would probably agree that this country has a long way to go before people are really starting to feel secure about an economic recovery - despite the fact that we are told at every turn that the "recession" is over and jobs are sprouting up all over the place. For people in neighborhoods and communities throughout America, including in Escondido, that oftentimes does not seem to be the case.
Source: Consumerist, "Consumers Have Paid Down $32.5B In Credit Card Debt So Far This Year, But It's Still Not Enough," Ashlee Kieler, June 9, 2014