HIGHER DEBT: Higher tax payments mean less money will be available to consumers to pay down their personal debt. It may also force some households to turn to credit cards to pay for the essentials, running up their credit card balances.
"It could push some American families off their own cliffs of debt," says Bill Hardekopf, CEO of LowCards.com.
This comes at a time when credit card debt is increasing. The average credit card debt per American borrower increased to $4,996, up 4.9 percent in the third quarter from year-ago levels, according to a report released by TransUnion. The same report showed delinquencies in credit card accounts are also on the rise. Late payments at least 90 days overdue slightly increased to 0.75 percent during the July-September period, up from 0.71 percent in the third quarter of 2011. The late payment rate was 0.63 percent in the second quarter of 2012.
Credit: MGN Online