Credit card debt in December nearly tripled estimates by analysts
On behalf of Ellett Law Offices , P.C. posted in 1. Credit Card Debt on Thursday, February 23, 2012
Just after New Year’s, we wrote a post about how consumer credit card spending increased during the month of November. Many economic analysts believe it was part of a natural trend where consumers bust out the credit card as the holidays approach.
More data continues to roll in surrounding credit card usage and the holiday season. The Federal Reserve noted two weeks ago that the total amount of outstanding credit sat just shy of $2.5 trillion at year’s end. That figure means consumer credit went up by $19.31 billion during December, almost three times greater than what financial analysts had predicted.
With the economy unsettled and many people still searching for work, the month of December seems to have forced many people into borrowing to cover their holiday expenses.
Sometimes increased consumer credit indicates that people are comfortable with the economy to take on more debt. Other times, it is a sign that consumers have been stretched so thin that they have no choice but to use their credit card to ensure their seasonal purchases are secure.
As the holiday season passes, in rolls tax season – a clearly important time for everyone. However, the financial situations for each individual can vary greatly, and there are many exemptions, debts and fiscal issues that need to be addressed.
You can capitalize on your tax return by consulting an attorney who can review your filing and discover these types of provisions that could bolster your refund. What you do with that refund is up to you, but for the many who routinely swiped their credit card over the past few months, it is an opportunity to clear their debts.
Source: Wall Street Journal, “Credit-Card Borrowing Surged Over Holiday Period,” Jeff Bater and Jeffrey Sparshott, Feb. 7, 2012