It is reported that consumers nationwide, including in Arkansas, carry increased levels of credit card debt. Researchers have been able to determine which age groups are the biggest spenders. However, the question that remains unanswered is on what consumers with high credit card debt are spending their money.
A finance professor in another state says those with the highest credit card debt are the consumers who pay only the minimum amount on their credit cards every month. He noted that, although increased credit card debt can be seen across all segments of society, it is clear that — on average — baby boomers have more credit cards per person and also tend to carry the highest credit card debt. Millenials, on the other hand, have fewer cards per person, and they appear to be more careful when it comes to credit card spending.
It is not uncommon for consumers to use mainly credit cards for purchases — not only for convenience but also to earn rewards, such as travel points and more. However, just like these points and rewards can accumulate, so can the debt — often at an alarming pace. Although it is easier said than done, it is often advised that no more is spent than what can be paid per month.
It is also questioned whether higher spending is a sign of confidence in the economy or a sign of consumers having to use their credit cards to pay their bills. Arkansas consumers who are finding it impossible to overcome mounting credit card debt may want to consider filing for personal bankruptcy. To obtain the necessary information to make informed decisions, a consultation with an experienced bankruptcy attorney may be an appropriate step to take.
Source: CBS Minnesota, “Good Question: How Much Are We Charging?“, John Lauritsen, May 9, 2016