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June 2014 Archives

Americans going deeper into credit card debt in 2014

Most of us know what we should do in terms of credit habits in order to get on track and out of debt. Unfortunately, knowing and doing don’t always match up. According to recent numbers from CardHub.com, Americans are paying down less in credit card debt than we did last year, and significantly less than we paid down five years ago, in the midst of the recession. In fact, it is projected that Americans will significantly add their credit burden this year.

Report: credit card debt increased significantly in April

According to a recent report by the Federal Reserve, the rate of growth in consumer credit card debt is the fastest it has been in over 12 years. A particular increase in consumer borrowing was seen in April, during which borrowing increased to $26.8 billion from $19.5 billion in March. The reasons for the increase are not fully known, though automobile and student loan debt is said to have been big contributors, as well as credit card debt. Other reasons for the increase probably include increasing employment and growth in income for many households.

Report: credit-scoring models often treat medical debt unfairly

A report issued last month by the Consumer Financial Protection Bureau concluded what many Americans already know to be the case—hefty medical bills are having a bad impact on consumer credit scores, and in many cases unfairly. The problem, according to the report, lies not only with the way the medical industry handles medical debts, but also with the credit-scoring models currently used.