If you have been one among the millions of customers who used their credit card excessively during the holiday season, get ready to pay off your debts now. The credit card statements will arrive anytime soon and it is time to consider options to pay off your dues at the earliest.
Main officials from prime shopping centers in Birmingham reported they catered to larger number of people than they expected during the weeks between Thanksgiving and New Year. The best retail discounts coupled with the slowly improving economic situation inspired customers to shop without second thoughts, after a spate of curtailed spending during the years before.
Bill Hardekopf, one of the leading experts in credit cards, said that the holiday usage increased after the Federal Reserve announced that consumer borrowing had increased to $2.46 trillion, which is an increase of $7.56 billion, the largest in the last 24 months. While revolving credit reported an increase of $366.2 million in the month of October, non-revolving credit also showed an increase of $7.28 billion.
After months of curtailed spending during the economic downturn, customers are now willing to spend a little more considering the slight improvement in the economic conditions. Credit card debts, which fall under the category of revolving debt, fell for 32 months within a 36 month period considering the fact that customers had curtailed their spending and card issuers had tightened the norms of application. However, the situation seems to be getting better now. With customers showing signs of spending, the credit card industry is gradually on the rise again.
Bill Hardekopf said that the credit card lenders were back at marketing aggressively to re-enter the market and increase the number of customers. However, this time around they are being more cautions and only targeting customers with good to excellent credit scores in an effort to minimize financial risks. Hardekopf also warns that customers must be very cautious while responding or applying to various offers that pop into their email. If restraint is not exerted, customers can get into large debts and feel the financial pinch, sending the economy spiraling downwards again.
Greg McBride, a financial analyst with years of experience, said that customers should make a list of all their dues, minimum payments and interest rates so they can prioritize their debts and clear it off at the earliest.
