Mover Mike

Back in January I wrote in a post “Here’s an idea I like a lot: CardHub.”

Now I see that Card Hub has a blog called Wallet Blog. Part of the reason I liked Card Hub was our ability to search for the best credit card for us including the best interest rates. Wallet blog seems devoted to make us smarter with credit. Take this post 2010 Starts with an Alarming Debt Trend.

CardHub.com released the Q1 2010 Credit Card Debt Study this week, which revealed that consumers are on track to end up with more debt at the end of 2010 than 2009, despite positive signals in the economy

One of the reasons for the depth of this recession was that consumers had more debt than could be justified by their income.  Because of the recession, debt is down from “$973.2 billion at the end of 2007 to $829.4 in April of this year,” but most of the reduction has come from the write off of bad debt. Now consumers, it’s feared, are reverting to pre-recession behavior.

Wallet blog has this important piece of advice:

With the unemployment rate at 9.7 percent (seasonally adjusted) – almost twice what it was three years ago – our economy simply cannot sustain pre-recession debt levels. Other fundamental weaknesses in the economy, such as a huge federal deficit, make it even more important that consumers remain fiscally responsible and are diligent in paying down their credit card debt in order to avoid future hardships.

Indeed!

Tags: Business, Economics, Housing, Investing, culture //
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