The allure credit cards can be especially strong when the winter season comes around. Due to the large number of Michigan citizens who elect to use their credit cards in order to shop for the holidays, it can be easy for credit card debt to start to pile up. With the recent statistics that have been released, there is an indication that consumers are adding to their credit card debt and that more consumers are now deficient in their payments than in the previous year.
It was reported that for the third quarter of 2012, there was a 4.9 percent increase in the amount of debt each consumer held. Currently the average debt load is $4,996. It was also reported that the number of consumers who are 90 days or more behind credit card payments has risen from .71 percent in the third quarter of 2011, to .75 percent in the third quarter of 2012.
Some individuals have attributed the rise in credit card debt with the holiday season. It was also stated that, despite the recent uptick in debt loads overall, consumers are still focusing on paying down their debt from the time of the recession. However, the delinquency rate may be of concern due to the significant rise from the second quarter of 2011, where the 90 day or more delinquency rate was at .60 percent.
Keeping on top of credit card debt can be one of the main priorities for Michigan residents. Without the proper restraint, theses debt loads can soar out of control. If this does occur however, consumers may still have some viable options to rid themselves of this debt, which can include the filing of bankruptcy, an action that could provide them with the relief they need to return to fiscal stability.
Source: USA Today, "Average credit card debt per borrower up in 3Q," Nov. 19, 2012