The Associated Press is reporting that an increasing number of Americans are delinquent on their credit card bills. The highest number of delinquencies are in those states that are currently reeling from the subprime loan crisis. Subprime loans are loans that are extended to homebuyers with troubled credit histories.
The financial services outfit known as Online Resources Corp. notes that one-fourth of U.S. households are behind on at least one bill by a month or more. Americans appear to be delaying paying on their credit cards and utility bills and paying their mortgage bills instead.
Consumer counselors note that a number of consumers believe that it’s perfectly healthy to carry a large amount of debt. They might not even realize how much money they’re losing in interest fees and other charges.
The Federal Reserve reports that U.S. citizens owe almost $1 trillion in credit card bills. In addition, lenders wrote off nearly $1 billion in defaults in October. That’s an increase of nearly 20% over the previous year.
Experts say that this time of year is a great time to put your financial house in order. The sooner you can get control of your debt, the better off you’ll be. You can start by paying off high-interest credit card bills first. You might also consider transferring your balances to credit card accounts with lower interest rates.
It may also be a good idea to resolve in the new year to pay only in cash. That way, you’ll resist the urge to spend money you don’t have. You might also want to draw up a budget so that you have a clear idea of just where your money is going. Resolve to reward yourself in ways that do not involve trips to the mall. An afternoon off work or a walk in the park may be just what you need to elevate your mood—and neither will cost you a cent.
Recent additions:
- How Much Debt Do You Really Have?
- Debt – The Latest Trend?
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- Debt Help for Students
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