Credit Card Debt at all time high…yet banks easing standards

Credit Card debt

Credit Card (Photo credit: 401(K) 2012)

Credit card debt at all time high…yet banks easing standards

A study by the Federal Reserve shows that the number of American consumers using credit cards to pay daily expenses is at an all time high.  A report by Georgetown University also shows credit card debt and bankruptcy filings have skyrocketed revealing that consumers are “mired in debt.”

How bad is credit card debt?

The latest statistics from the Federal Reserve indicate the total amount of consumer debt in the United States stands at nearly $2.4 trillion.  Based on the latest Census statistics that works out to be nearly $7,800 in credit card debt for every man woman and child living in the U.S.  The average credit card holder owns nearly nine cards according to the Reserve.  That’s a lot of due dates to keep track of.

Credit card debt can get overwhelming

But…fear not. The U.S.Office of the Comptroller of the Currency just reported that Banks are gradually starting to modify their underwriting standards, making it easier for consumers to obtain a line of credit than it has been for the last three years.

Is now the time for more credit card debt?

The authors of the study claim that 25% of banks offering credit cards have eased their standards through reducing score card cutoffs and increasing maximum credit line size.  It seems like a dangerous practice to be expanding the ability of those with high credit card debt to get into credit card debt even deeper.

Compare credit card offers online before applying

There’s no use in racking up a lot of rejections from credit card offers that you clearly don’t qualify for.  This leads to a bunch of unnecessary inquiries that lower your credit score even further.  Ther are many good sites that let you compare offerings.  I don’t want to recommend one over another.  They’re not hard to find

If you have high credit card debt try creditkarma.com for a free transunion score and competing offers for your credit bracket.
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After practicing law for 37 years Edward F. St. Onge, Sr. now devotes all his time to helping consumers achieve a high credit score with amazing speed. Learn the counter-intuitive secrets to credit scoring through his down to earth instructions backed by extensive knowledge of the laws and trends. All of the latest tricks and techniques that they don't want you to know now at your disposal. At last a level playing field for the consumer!

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