Credit card debt increased from July to September

As the economic climate settles and improves slightly, people throughout the country--including those in Mississippi--are increasing their spending habits. Typically, people are turning to their credit cards to cover the costs. There is evidence, however, that this additional spending has led to an increase in credit card debt.

The credit reporting agency TransUnion confirms this increase in debt. The agency specifically examined consumers' use of their credit cards during the third quarter of this year--June through September--and compared it to last year's spending and debt trends during the same time period. TransUnion found that consumer debt grew by nearly five percent. The agency also noted that there has been an increase in late or delinquent payments--rising from 0.71 percent last year to 0.75 percent this year.

Late payment fees and interest can certainly become daunting if consumers do not pay them off quickly. In addition to working with a legal professional to address and pay off such credit card debt, individuals in Mississippi can also gain insights about the law and identify more strategic ways to combat debt through other resources.

For instance, federal law secures certain protections in regards to late payments. The Credit Card Accountability Responsibility and Disclosure Act of 2009 establishes that a payment cannot be considered late unless a credit card company mails or somehow delivers a statement 21 days before the due date.

With such an understanding of the fine details of the law, Mississippians suffering from credit card debt can not only work towards paying off their debt, but also, they can affirmatively combat it. They can challenge their credit card company's practices to successfully avoid late charges all together if they are able show that they did not receive a timely statement, or they may be able to raise other defenses.

Source: USA Today News, "Average credit card debt per borrower up in 3Q," Nov. 19, 2012

1 Comment

The reason why credit card debt increases because there are more interest paid, which diverts the cash flows from more useful forms. Another reason is there an increased amount of spending could be attributed to more confidence in the United States.

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