Pete Bolin, analytics manager at Experian
quotes, "tend to suggest, on average, people in
the last couple of years are accumulating more debt and are
utilizing credit cards more than in the past."
Maureen Hankins, Director of YWCA
Consumer Credit Counseling Services thinks the study
conducted above is right on track. She says the people in her
credit counseling programs average about 8 credit cards per
individual. She also says people are not saving enough money
to get by in times of financial emergency.
President of Consolidated Credit Counseling Services, Inc., thinks people
are just too impatient and materialistic which then
leads to increased credit card debt. He writes, "People
have a ferocious appetite for items that they really can't afford.
Many times they break down and charge it to satisfy their wants."
The Federal Reserve US says consumer
debt has risen to a staggering $876.2 billion. Greg
McBride, Senior Financial Analyst at BankRate.com quotes, "A
lot of figures show that the consumer-debt burden continues
to grow, and credit cards represent a lot of that additional
debt. Credit-card debt represents a very high-cost debt for
many households. Interest rates are in the double-digits with
fees and punitive interest rates lurking should you slip up."
If you miss 1 or 2 payments on your
credit card debt, the issuing company will skyrocket your interest
rate to a whopping 27% - 30%! McBride thinks paying
the minimum monthly balance each month on your credit card debt
means NOTHING. Your bad spending habits will just force the
credit card bill to go higher and higher up every month. Consumers
should keep their balance-to-credit-limit ratio as low as possible.