The numbers are in and they don’t paint a very positive picture for Americans who now find themselves with the highest credit card debt ever in their history. Combined, , which is a brand new milestone. This number beat the previous record high which was set back in April 2008. Revolving credit has been on the rise over the past few years thanks to the ease of access.
Where many consumers are getting into hot water is the fact that their debt may seem manageable at the moment, but if an emergency should occur they will have no means of paying for it.
More Credit Cards Being Issued
Not only are consumers being granted higher limits on their existing credit cards, it seems as though there has been greater access to credit cards in general. Credit card issuers and major banks have been giving out more cards. Just in the first quarter of 2017 alone, there were more than 171 million consumers that had access to credit cards. This is another milestone as that is the biggest it’s been since 2005.
It seems to be a perfect storm that consumers are heading into – more access to credit cards and larger limits on their cards. All of this has translated to a very large amount of credit card debt.
Lenders haven’t made the situation any better as they are offering below average or sub prime rates as incentives. As well they are giving access to credit cards to those with low credit scores. Instead they are simply giving them a lower spending limit.
Looking for Other Ways to Access Cash
As more and more consumers wrack up their credit card debt and hit their limits, they are finding themselves in the position of still needing cash but not knowing where to turn for it. As mentioned, many are just one emergency away from not being able to afford anything. This is why things such as car title loans are becoming more popular.
A car title loan . In order to qualify for this type of loan, the borrower must be the car’s lien holder. In general, these loans are meant to be paid within 30 days or else the lender can take the car and sell it. These types of loans are meant for those who need access to cash quickly, have a bad credit score, and a low income.
Companies such as can offer up to $50,000 to the borrower depending on their vehicle and their monthly income. While some lenders may demand the loan be paid back within 30 days, 1 Stop Title Loans works out instalment loans with borrowers that can run between one month and four years.
Look for Alternate Means of Borrowing to Grow
So as the credit card debt in the US continues to grow, look for other means of consumer borrowing to rise, such as car title loans.