In 2006 for the first time [tag]debt card[/tag] usage outpaced [tag]credit card[/tag]. People used their debt cards to purchase
26.6 billion dollars while at the same time they spent 24.4 billion dollars on credit cards.
Is this a new trend to pay now and avoid paying for it later? Let’s hope so. It means more people are [tag]paying[/tag] cash
for things rather than put them on credit. Still 24.4 billion is way too much in credit but if this trend holds the American
consumer are getting themselves in a better position.
One troubling trend is more people used [tag]home equity lines[/tag] to pay off [tag]high rate interest cards[/tag]. Many
people will use this method to successfully pay off their debt but it does come with its own very serious risks.
When you use home equity to pay off [tag]unsecured credit card debt[/tag] you have basically tied the debt to your house. What happens if you are unable to make your payments? A loss of the job, etc… Now your house is at risk.
I personally get great satisfaction in pushing the debt card button and not the credit button when I buy things. It sounds like
Americans are also is felling the same satisfaction in using [tag]CASH[/tag]!
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