American consumers are once again adding tons of credit card debt to their lives, according to a recent report American’s added $18.4 billion in debt during the second quarter of 2011, numbers that haven’t been seen since 2008 and a 66% over debt accumulation compared to the same period of 2010.
According to credit card research firm CardHub.com compared to 2009 consumers added 368% more debt in 2011 then they did in 2009’s Q1.
While the debt load is higher than recent times the actual amount of outstanding credit card debt is down by 18% from $972 billion in 2008 to $792 billion in 2011 according to Federal Reserve numbers.
If current trends continue American consumers are expected to rack up $54 billion more debt than they did in 2010.
In a maneuver that should have predatory lender opponents worried much of the recent debt is being generated by consumers with “so-so” credit now that credit card company’s have a better idea of the governments direction following final approval for the CARD Act and “swipe fee act.”
Debt card company’s have also attempting to nickel and dime their customers more thoroughly with debit card fees and the removal of many debit card rewards programs which has pushed many consumers back into using credit cards over their banks debit card offerings.
There is one good sign given current debt levels, consumers may be using credit more openly once again but they are also defaulting less than they did in the past and they are making on-time monthly payments more regularly.
Do you think credit card using consumers are allowing their debt get too far out of hand once again?