Americans spending more than incomes are rising, causing debt to reach
record
All across the nation, banks and other financial institutions have
been sending pre-approved credit cards to millions of Americans.
And the latest data shows many consumers have been using those
cards. In fact, for every $1 incomes have risen over the past five
years, consumers have spent $1.10. That's helped push consumer debt
to record levels and has resulted in record debt, delinquencies
and bankruptcies.
Despite a strong economy, 3-1/2 percent of credit card holders
-- or 6 million people - are now missing payments. That statistic
is at its highest level since the 1981 recession and is cause for
alarm, according to Durant Abernethy, president and chief executive
officer of the National Foundation for Consumer Credit.
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