The increase in consumer debt is said to be caused by both student and auto loans, not credit card debt.
Dallas, TX (PRWEB) October 14, 2013
Credit Card Consolidation Loan recently published an article that discusses the bad financial habits that keep consumers in debt. This is in hopes that consumers will continue with their efforts to cut back on credit card spending, as reported in a recent article in USA Today.
On October 7, USA Today published the article, “Americans cut back on credit cards for 3rd month.” It reports how consumer debt may be up, but credit card debt is not the one causing it. For three straight months, credit card debt is continually going down. This is according to the Federal Reserve. From $883 billion, the overall credit card balance is down to $850 billion. The increase in consumer debt is said to be caused by both student and auto loans, not credit card debt.
According to the USA Today article, consumers may be hesitating to charge their purchases because of the slow job growth and the small increase in wages. Credit Card Consolidation Loan believes that this is evidence of a smarter American consumer.
To help make consumers wiser, the debt relief website reveals 4 bad financial habits that they should stay away from. The article published on October 9 is titled “4 Financial Habits That Will Keep You In Debt.”
The article discusses how consumerism may be to blame for instilling in consumers the wrong habits that got them into debt. These four habits are:
1. Living beyond one’s means. This simply refers to the habit of consumers to spend more than what they are earning. Naturally, that results in debt. The article reveals that people usually spend on unnecessary things first. When the time comes for the priority expenses, the consumer is forced to borrow money to finance it.
2. Refraining from making cash payments when it is available. Some consumers prefer to use credit when they have cash - probably because of the cashless transaction appeal and the emotional attachment to actual cash when it is being spent.
3. Paying with money of someone else. Another habit that is mentioned by the article is paying with the money of someone else. This actually refers to credit cards and getting loans. The article states that the convenience of getting something even if the consumer cannot afford it at the moment is not cost free. The consumer has to suffer the interest rate - which the article believes is a waste of money.
4. Using credit cards for basic purchases. Lastly, the article believes that using cards for basic needs will make it difficult for consumers to monitor the spending. It can accumulate very quickly if the consumer is not careful.
Credit Card Consolidation Loan is not entirely against credit but they believe that there is a right way of getting in debt without it ruining the consumer’s finances. To read these practices, click on this link: http://creditcardconsolidationloan.org/4-financial-habits-that-will-keep-you-in-debt/.
Visit CreditCardConsolidationLoan.org to learn more about credit cards and how to get out of debt through debt consolidation loan.