Credit Card Spending Is Up, But So Is Consumer Debt

Here we are in a new year and it seems that credit card debt is still on the forefront of people minds. New research has shown that the nation is still struggling. On average twenty-two percent of Americans will be burdened by credit card debt throughout this year with as much as seven percent still paying off what they purchased in Christmas well into the next year.

This holiday season saw a rise in spending of about 5.5 percent as compared to last year. Most of that came during the first fifty days before Christmas. Retailers tend to benefit from increased credit card usage because it usually means that people are spending beyond their budgets.

Many shoppers vowed to only spend cash this holiday season but unfortunately, this requires a large amount of budgeting which most people can't manage. Those who were able to accomplish this were people that were already in control of their debt.

The average person's credit card debt saw an increase from the previous quarter. Nearly Thirty-three states reported an increase in the average daily balances with the highest of them reporting $4,965 per card. It has also been reported that there has been an increase in cards being issues by as much as 19.1 percent. This shows a significant growth despite the weak economy.

All of this data presents conflicting views of our economy. Some people spent more money during the holiday season because they felt the economy was rebounding yet others were still struggling to cover expenses and had to lean on their credit cards. Essentially you have some people who already had good credit and doing a fine job at managing it. These people tended to pay down their debt more. Then there were the people who saw a large increase in their debt mostly from people who lost jobs and had things like medical emergencies and other unexpected expenses who were forced to turn to the credit cards to float them through.

The city that showed the highest average debt in December was San Antonio, which had a $5,177 average. This is Twenty-one percent above the national average. They were followed by Jacksonville FL who has $5,115. As an added note they also were one of the cities with the lowest average credit scores. Atlanta came in third with $4,960 followed by Honolulu with $4,939.

All of this data shows that there are still thousands of Americans who are struggling with credit card debt despite the reports of increased spending. There are fewer and fewer ways consumers can get a handle on their debt and back to a path of financial freedom. What makes it worse is that many people don't know where to turn. All too often people seek advice from agencies whose sole goal is to get whatever money from the person that they can.

Even with the new regulations set forth by the Federal Trade Commission, there are still debt consolidation companies out there that take advantage of people in desperate situations. Many of these companies continue to gouge people with upfront fees under the illusion that they are being represented by a law firm.

As noted in several pending class action law suits, the majority of these debt settlement law firms are nothing more than a shell covering a debt settlement company who is actually doing all the work. In many instances the debt settlement attorney is not actually representing their clients in legal matters with the exception of negotiating their debts. The fact of the matter is that you do not require the assistance of a lawyer to negotiate your debt and by having an attorney doing this for you does not reduce any of the risks or affects on your credit.

Individuals who are falling behind or about to fall behind on their credit card payments, or people who are essentially robbing Peter to pay Paul, should seek out a professional debt analyst who can review with you all of the debt consolidation programs that are out there for you.

Phill has been in the debt relief industry for many years providing solutions to individuals seeking credit card debt help. Take the time to understand all of your options before making your decision by visiting his website at http://www.legaldebthelp.net.