Kentucky residents may be aware that the Credit Card Accountability Responsibility and Disclosure Act, which was passed in 2009, placed a number of new restrictions on credit card companies. One of the most significant changes brought in by the law was a strict set of rules governing when an issuer could increase interest rates and by how much the rates could go up.
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.
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.
Living on a fixed income presents a whole host of unique challenges. However, this is something millions of senior citizens deal with on a day-to-day basis. Even though retired seniors are past their most significant income-earning years, they might still deal with growing expenses and debt.
For those who have been crippled with credit card in the past and who’ve been forced to file for bankruptcy to get out from under that weight, credit cards often take on a whole new significance. For some former debtors, the new perspective on credit cards is more responsible, more controlled. For others, the view of credit suffers enormously. It is not uncommon for some people to renounce credit altogether, or at least as much as possible.
According to new research by credit score provider FICO, more and more young Americans are choosing to forego the use of credit cards since the recession. In fact, the number of consumers ages 18 to 29 has reportedly doubled since the recession. Roughly 8 percent of consumers from this group had no credit card in 2007, but that number rose to about 16 percent in 2012.
Credit cards are a very useful tool in today's economy. For many people, credit card use is a central part of their financial life. There isn't necessarily anything wrong with this either. When used wisely, credit cards can play an important part in a person's spending habits. The problem with credit cards arises when they are not put to wise use.