The holidays give many people an excuse to start spending their hard earned dollars, often on things they want over things they actually need. The Federal Reserve said earlier this month that increased borrowing in September and October eliminated the decrease in credit card borrowing in August. Some experts say this could point to a renewal of consumer confidence in the economic outlook, while others say the increase in spending may be temporary.
Many Americans spend on credit cards, hoping to bank on some rewards programs offered by lenders, or they just find themselves in a financial emergency and use them as a last resort. Whatever the reason for using a credit card, a growing number of people in recent years have found themselves with out of control credit card debt that leaves them in need of credit repair.
Even though some economists think this is a positive sign that consumers are slowly easing their tightly closed pocketbooks, others say because wage levels are just barely increasing at the same rate of inflation this spending will be temporary. This optimistic attitude could find some consumers taking advantage of new credit card deals and seeking out better rewards, leaving them with high interest rates that they may not be able to pay.
Not being able to make the payments on your credit cards can damage your credit and uncontrolled spending can get you into credit trouble, leaving you feeling desperate for relief. Seeking out an experienced attorney in the area of credit repair can help you fix your credit damaged by financial instability in recent years.
Source: Washington Post, “Ahead of holidays, Americans charged more to their credit cards for 2nd straight month,” Associate Press, Dec. 7, 2011