Americans Are Losing Control Over Their Credit Debt
U.S. banks are yet again finding themselves under pressure as the number of Americans falling behind their credit card payments grow in number. This is also coupled with low-interest rates and slower loan growth.

Though not nearly as bad as what happened in 2008 - 2009 during the great recession, the rise in credit card delinquencies are threatening banks and lenders with the possibility of higher loan losses.

Capital One Financial Corp and JPMorgan Chase & Co are among several large U.S. banks and credit card companies reporting delinquency rates on the rise for the month of August, which is the second consecutive month since delinquency rates fell for four previous months in a row.

Americans Owe a Lot of Credit - a Whole Lot

WalletHub, a personal finance site, analyzing 2016 credit card debt trends, reported that the average American family owes around $8,377 in debt to credit card companies. A chart on the site shows the that the average credit card debt per household is on an ever-increasing upward trend. At one point in the past year, it jumped a little over six percent. At this point, it is as high as it was during the Great Recession.

You might be thinking that these people who are overwhelmed by huge amounts of debt are in trouble with their creditors. The fact of the matter is, 38 percent with good credit scores (660 and above) are the ones struggling to pay their debt off their debts, according to Goldman Sachs. Therefore, simply looking at the numbers doesn't tell the entire story.

More and more Americans are seeking help from credit repair companies as well. This is because, despite the rumors, Americans are actually putting in good effort to get rid of their debts. They are just having trouble shaking their reliance to plastic, using credit cards for everything from vacations to bar hopping. When you're carrying plastic, the urge to use it is simply overwhelming.

Here Are Some Better Credit Card Use Practices

Credit cards should not be thought of as cash growing on trees. At most, credit cards should be used for emergencies, like when you get the checkout line and suddenly realize you have forgotten your wallet at home. Other than that, if you should practice discipline in saving money for any medium to large purchases or expenditures you plan on making.

Here are a few ways to get your credit card spending back down and paid off.
  • Understand that if you aren't able to pay cash for something, most likely you would not be able to afford it in the first place. People don't like to face this truth, but it is the cold hard fact. People use credit cards as a financial crutch far too much. If they see something that is out of their financial reach, they grab the plastic. Just stop it.
  • You need to get a full understanding of your credit cards. I know most of us find the fine print quite boring, but you should have read it the first time. Not only will you learn your limitations but you might find a way to save some money too.
  • Only charge amount that you can pay off when the bill is due. This helps you learn some good spending habits. This also saves you on interest. This means not falling for the late payment trap.
  • This one we all hate - the recurring payment trap. Sometimes they call it "continuous payment authority" or CPA. This allows companies to charge your card on regular intervals. Sometimes they sneak it in on you, so be sure to read the agreement carefully.

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