DTT Buzz

More and more people are using credit cards for everyday purchases they once could afford. Consumers used to be able to use the equity in their homes as extra cash if needed. For a lot of Americans their home values have dropped and that option is no longer an option. In order to make ends meet, they are using credit cards to help meet the skyrocketing price of fuel and groceries. Many people are not able to increase their income to match the cost of living. Even though more are spending less on things like entertainment and clothing, it's not enough. Their only solution is to use credit cards to supplement their income. This is not really a solution to the problem. Just a temporary "Band-Aid" to a gaping wound that's only getting worse. Sooner or later consumers are going to have to pay back the debt . They will have to increase their income, or make cuts somewhere else. For older Americans this task will be impossible. Others will simply give up. Most will have to make sacrifices elsewhere.

Not using credit cards is best for your financial health, but for most this is not an option. Not using credit cards means their families don't eat, or have electricity, or have the gas to get to work. So my only advice is to use your cards wisely. Don’t get in over your head, and know that only time will tell what the impact of such debt will be.

Megan Grant

Daytrade Team