POST-HOLIDAY DEBT MAY BURY CONSUMERS
January 2, 2004
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As credit-card bills come due in January, consumers unable to afford their spending will become part of the annual cycle of buyer’s remorse. In the worst cases, they will discover why bankruptcy filings are highest in the period from March to May.
Americans owe nearly $2 trillion in consumer debt, $728 billion of which is on credit cards and other revolving loans, according to the Federal Reserve Board. That’s up from $1.5 trillion three years ago, before the stock market tumble and recession. It doesn’t include mortgage loans.
“Consumer debt is a huge problem and a trend that continues to grow,” said Shelley Curran, a policy analyst at Consumers Union in San Francisco.
By Katherine Reynolds Lewis
Newhouse News Service
