Credit cards have been a way of life in America for the last 40 years. You can’t watch a sporting event these days without hearing a “What’s in your wallet?” commercial from Capital One!
During the Great Recession of 2008-2009 many Americans fell out of love with credit cards. Not only are they expensive, but many people who lost their jobs were scarred by not being able to make payments on their cards.
Consumers are responding to increases in their credit card limits. One of the oldest “tricks” card companies use to get you to use their card is to increase your credit limit.
Who doesn’t like getting a letter in the mail saying, “You’re a great customer – we’ve increased your credit limit by $1,500”? That’ll make anyone feel good!
If you add up all the credit lines of every credit card out there, consumers have nearly $3.0 trillion of credit available to them.
On average, consumers are using about 1/3 of their credit card limits. How does your usage compare?
While times are good and jobs are plentiful, it’s prudent to make sure you don’t become overconfident about your financial future.
The economy goes through cycles, having gone through two deep recessions in the last 20 years.
If you’ve been whipping out the plastic more often, it might be a good time to make sure you’re not getting too comfortable with credit card debt. In fact, tax refund season is a great time to knock some of that debt down – and keep it down.
Wondering how this affects your future finances?
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We are financial advisors in Deer Park and Barrington, IL. A team with a passion for helping others design a path to financial success — whatever success means for you. Each of our unique insights fit together to create broad expertise, complete roadmaps, and creative solutions. We have seen the power of having a financial plan, and adjusting that plan to life. The result? Freedom from worrying about the future so you can enjoy today.