Credit cards and carrying too much in the way of balances were among some of the main causes of the recent recession, according to many economic analysts. This has caused Americans in Texas and elsewhere to become more wary of carrying too much credit card debt. This can be seen by the steady decline in credit card usage in the U.S. This trend continued during the second quarter when credit card balances decreased considerably.
In the second quarter, amounts owed on credit cards fell to $672 billion. That's down 22.4 percent from the peak of this statistic which was achieved in late 2008. Also, delinquencies on monthly credit card payments are at their lowest point since the end of 2008. Currently, credit card delinquencies are reportedly running at 10.9 percent. Credit inquiries, which are a commonly used economic indicator, have also fallen for two quarters in a row.
However, instead of credit cards, consumers are apparently accumulating debt via vehicle loans. These types of loans increased $13 billion in the second quarter to $750 billion. This could have been a result of the availability of more credit. Overall sales for new cars rose 16.3 percent in the second quarter, compared to the second quarter of last year.
Despite the trend, there are still many consumers who still find they are behind on their monthly payments for their credit cards in Texas and elsewhere. For these individuals with overwhelming credit card debt, bankruptcy may be a viable option if it seems as if there is no way to catch up on payments. It may be possible to discharge credit card debts through personal bankruptcy and to regain solid financial footing for the future.
Source: CNNMoney, "Consumers cut up credit cards, but buy cars," Tami Luhby, Aug. 29, 2012