Free Credit Report Repair Guide

In 2006 for the first time debt card usage outpaced credit card. 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 paying 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 home equity lines to pay off high rate interest cards. 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 unsecured credit card debt 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 CASH!

Technorati Tags: debt card, credit card, paying, home equity lines, high rate interest cards, unsecured credit card debt, CASH

This entry was posted on Thursday, November 9th, 2006 at 9:34 am and is filed under General News . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.