Thursday, 7 September 2017

Freedom Debt Relief Reviews Finds Americans Are Using Credit Cards at Record Levels

Posted at  11:26  |  in  Debt

If you've noticed you're receiving more and more credit card applications in the mail, there may be a reason for the influx in junk mail. Freedom Debt Relief Reviews have found that, accordingly to a report by TransUnion, more than 171 million Americans have their own credit card- the highest level since 2005. Freedom Debt Relief Reviews has also found that the overall credit card debt in the United States has reached $696 billion in the first quarter of 2017- an increase of over 7% when compared to previous years.

Some financial experts have called the continuing rise of the average American debt "concerning," especially in light of the high levels of employment that the country is seeing. However, workers are not earning more, despite increases in inflation and the average price of housing. Sean Fox, co-president of Freedom Financial Network, stated that "That combination of factors is creating a crunch that is especially worrying with the just-announced interest rate hike." 

Despite rising levels of debt and credit card usage, there is reason to believe that Americans are using their credit cards more responsibly since the 2008 credit crisis. Freedom Debt Relief Reviews has found that though the instances of late payments have increased, Americans on average have a higher line of credit on average. It's also likely that the increased levels of late payments are simply a matter of probability; as credit cards become more and more ubiquitous, more Americans who are forgetful or who are prone to overspending will be approved for lines of credits by chance.  

The problem with credit cards comes when people open too many credit cards at once and are unable to track what the owe on which accounts. American consumers are being bombarded almost constantly with advertisements and appealing sign-on bonuses for credit cards; one of the largest factors contributing to the staggering amount of credit card debt that consumers owe is card mismanagement. One of the trickiest ways that credit card companies encourage Americans to open more accounts than they need is through in-store card offers. Store credit cards, found at nearly every type of retailer from fashion to home goods, come along with a one-time offer of an in-store purchase discount- most often advertised by a sales associate at the register to tempt you into saving before you pay. However, these cards usually come along with high interest rates, and can leave shoppers overwhelmed with cards that they do not need or want.

When you have more than one card, it can be difficult to remember when payments are due, which cards have the highest interest rates, and what you owe on each account. Missed payments can damage your credit history and score- 35% of your credit score make-up is dependent upon making on-time payments on your lines of credit. Thus, Freedom Debt Relief Reviews advises consumers to seriously consider whether or not they need another card before opening any new accounts- a sign-on bonus or one-time offer is not nearly as valuable as a healthy credit score.  

The bottom line? Smart consumers should strike a happy medium with their spending and credit usage. While foregoing credit cards altogether is not recommended and usually does more harm than good to your credit score, owning too many cards is likely to lead to more missed payments and a pile of accrued interest. Freedom Debt Relief Reviews recommends that Americans focus on managing one or two cards responsibly, avoid in-store offers, carefully research interest rates before applying for a new card, and track their expenses on a daily basis. Effective money management begins and ends with a healthy budget, so make sure that you are tracking your spending as well. Using credit cards responsibly will leave you with a higher credit score and healthier credit history- along with the things you want and need!

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Jimmy Simond is founder of wallstreetsfinancenews.com he share his immense knowledge of finance in this blog. You can follow him on Google+.

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