Credit card debt in the US – The debt is rising every day!
According to a study by the Center for American Progress, a liberal Washington research institution discovered that as the credit pinch has made it more demanding to acquire property-based lines of credit, US consumers are choosing to turn to their credit cards as another option. The credit card debt in the United States has climbed to an amazingly high $790 billion. The Center for American Progress has researched and discovered that the credit card debt at this present day has rose four times more than earlier in this decade. It is said that the reason that the credit card debt is in such a bad state is due to the fact that many of the banks constricting lending factors that have lessened the amount of home equity lines of credit that many homeowners have been in need of using credit cards in this economic crunch.
Many homeowners are in need of more money to help survive in the economy, but due to the fact that there are so many banks and lenders that have become so strict on the guidelines of the home equity loans, many consumers are so financially strained, they have turned to their credit cards as a back up plan. Although it is debated as to how many Americans actually pay off their credit card balances at the end of the month, some saying about 50 percent, while 35 percent of Americans end up making their payments late and end up accruing late charges. Unfortunately, many of these Americans that end up paying late, do not realize the high fees and interest rates that come along with late payments.
The study conducted by the Center for American Progress, states that there should be stricter supervision with the credit card companies so consumers are fully aware of all that comes along with the use of the credit card and the exact penalties that will occur when you make late payments. There should be an improved relationship between borrowers and lenders, where the borrowers are more educated and lenders should be responsible in helping in educating the borrowers of the negative effects of late payments on credit cards.
These sources are factual and can be found at www.voanews.com
