A new study shows a record number of people have fallen behind on making their credit card payments. So what's to blame for late or non payments?
According to the American Bankers Association, more and more people are falling behind on making their credit card payment. Credit card loan delinquency is at 4.8 percent, an all time high.
So what's making it hard for so many people to make payments? Analysts and consumers blame the high cost of gas and other energy products.
" Gas prices have gone up double this in the last 6 months to a year. They money they would usually pay on their credit card debt is what they are paying right now on their gas bills," said Glenn Boone.
Boone deals with debt consolidation loans at First National Bank. He says individual debt is increasing and getting out of control. Debt consolidation loans, he says, can be a good tool to help you get back on track.
" They key factor is once you get the debt consolidation loan don't charge back up on your credit cards. If you don't have the cash to pay for goods, don't use your credit card," said Boone.
College student Jeff Judy says that's easier said than done.
"I've been using them a lot for food." I've tried to cut back on credit card use, only for necessities," said Judy.
Credit card companies may not mind as much if people pay late. Late fees make up more than 30 percent of overall revenue.
So before you pull out the plastic at the pump, think about how much you could end up paying for it.
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