...by Anthony Buono
As we head toward another recession, (many homeowners in Massachusetts will say we never left the last one), there are some disturbing credit facts out there I’d like to bring to your attention:
According to Equifax, nearly 15 million new credit cards were issued in the first five months of 2011, a three-year high.
- Banks gave 4.4 million cards to consumers with poor credit histories, a 65% increase during that same time period last year.
As humans we do have short memories, but try to recall that credit card overspending is what got us here in the first place. Of course, for awhile in 2008-9 no one could get credit, but credit card companies are lending again. If you rely on credit cards to pay for necessities, you could be getting yourself into trouble.
It is really easy to spend when you want something and there are no immediate consequences. But those bills pile up. If you are in debt of around $20,000, and you are only paying the minimums on your credit cards, you may need to seek credit help.
There is a correlation between rising credit card debt and bankruptcies. As consumers use credit cards to supplement their income, bankruptcies rise.
It is important to track your spending and make a budget. If you can’t pay in cash, then don’t buy it. Credit cards should not be used to pay bills; they should be used only for emergencies. If you are using your credit cards to pay bills then there is a problem that needs to be addressed.
Debt counseling can help you get your money on track. Contact Black and Buono for more information.