Consumers across the US, Canada and in Europe continue on their pace to rack up debt on their credit cards. The result of this uncontrolled spending keeps pushing consumers further fall behind on making the monthly payments creating an all-time high in credit card debt. 

The mortgage lending pop and building slow down, coupled with eroding household budgets and out of control spending habits telegraphs a clear sign of trouble ahead IF consumers do not stop and take action on their money habits.

Some consumer like to hide behind the “latest news” pointing the finger at interest rates and slow mortgages as the problem behind their increase credit card debt. The truth comes from bad buying habits learned over years, they pay little attention to what they can really afford.

How Bad Is The Paying Credit Card Problem?

The AP (Associated Press) recently analyzed data pulled together from 17 of the largest issuers or credit cards. The analysis show how behind payments and defaults are across the US.

Total up all the credit card accounts that are a minimum of 30 days late and you’ll be starring at over $17 billion dollars and that was in October of 2007. The number shows a 25% increase in late accounts over 2006.  

The rise of accounts that are 90 days behind also grow sharply by 50% or more when compared to the previous year. Defaults has grow also by 18% over 2006. Defaulting is when the credit card company basically gives up on ever seeing their money.

The money professionals fully expect the numbers of those “late to pay consumers” and defaults to grow after the dust has settled from this years’ holiday shopping spree often “financed” with credit card buys.

When money gets tight lenders are less willing to extend credit with home equity loans or take on a debt consolidation loan when a potential loan walks in the door and finds itself stamped with a consumers poor credit history. This is usually a good sign of their spending habits!

The New Year is usually the time people make promises to themselves, but anytime is a good time for families, couples and individuals to take a serious hard, detailed look at the status of their debt.

Here’s a few ways to Begin Attacking Credit Card Debt:

• Start looking for ways to reduce the number of credit cards
• Take steps to consolidate credit card balances
• Reduce the use of credit cards
• Make payments on  time
• Plan your purchases
• Use a budget

The consumers in the US are sending a clear message in my opinion – rocky times lie ahead! Mortgage rates and the housing slow down does play a part in a healthy economy, but so does the consumers use of managing their own debt – and that includes credit cards.

Start today taking control of your finances! It’s Never Too Late!