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Some consumers are reducing credit card use, while those having trouble may consider debt consolidation
01/22/2010
Given increased interest rates and fees, many consumers may have cut back on their use of credit card debt.
That trend was supported recently by the latest First Command Financial Behaviors Index. December saw 32 percent of survey respondents saying that they reduced their use of credit card debt when compared to a year before, while only 11 percent said they used their cards more.
"Changes in credit card usage are an important indicator of a larger yearning to reduce consumer debt," Terri Kallsen, executive vice president of strategic development at First Command, said.
Furthermore, new regulations regarding credit cards are also affecting people's use of credit cards. Of those surveyed who were aware of the Credit CARD Act, 22 percent said they reduced card use, while 15 percent said they paid off more of their balance every month.
Though the new rules may help consumers and may prompt them to pay down debt, some people may not have the means or knowledge to do so. If that is the case, they may consider debt consolidation through a credit counseling service, which can help reduce the number of bills they have to pay while also cutting down on interest rates.
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