National credit card debt sees upward trend at end of 2011
On behalf of Ellett Law Offices , P.C. posted in 1. Credit Card Debt on Monday, January 9, 2012
For the third straight month, ending in November 2011, consumer credit card debt increased according to the G.19 consumer report published by the Federal Reserve. Revolving debt increased 8.5% in November, totaling $798.3 billion, while non-revolving debt saw an uptick of 10.7% to $1.68 trillion during the same time frame.
Revolving debt is mostly credit card debt, while non-revolving debt includes a variety of items such as auto loans, boat loans and student loans.
Considering this rise in credit card debt in November, an experienced economist backed the notion that during the holidays, people are more willing to bust out the credit card. “Usually in November, you have the initial start of the holiday purchases,” he said. “It’s a month where you kick off the sales for the holiday season.”
The Commerce Department also released a report estimating a 0.2% increase in retail sales from October to November, including a 4.5% increase in spending when comparing November 2010 to November 2011.
This indicates that consumers were careful while still boosting their credit card spending, according to the economist. “It basically shows that even during the holiday period, consumers were cautious. They did spend, but they spent with an eye toward the bottom line,” he said.
It’s a generally positive sign according to many financial professionals, as unemployment rates dropped during the month of November as well. That optimism though is not shared by everyone this holiday season. Many face the very real threat of personal bankruptcy. If mounting credit card debt is pushing you towards the brink, an experienced lawyer in the area of personal bankruptcy can guide and support you through the process. With proper legal representation in your corner, you can arrive to the best financial and legal decision and move on with your life.
Source: CreditCards.com, “Consumer credit card balances jump in November,” Kelly Dilworth, Jan. 9, 2012
Tags: credit card debt, personal bankruptcy