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Equifax Reports Sacramento Residents are Racking Up Retail Debt
Author: Jillynn
There are endless reports, articles and blogs pointing out that Americans are on the up after the recession. Lessons have been learned (no McMansions without a McMansion salary), college has been reconsidered (or at least the student loans have) and frugality is being hailed not just as smart, but as trendy. So why are Sacramento residents seemingly making the same mistakes all over again? According to Equifax, one of the three credit bureaus, Sacramento is leading the pack when it comes to retail-branded credit cards.
Think that Macy’s credit card you’re always asked about or the TJ Maxx Rewards card that’s going to save you five dollars on your purchase. Equifax released a report in the autumn of 2013 showcasing that Sacramento folks are doing well when it comes to bank card debt but spending “freely” on those retail credit cards. It’s a backwards trend that simply doesn’t make much sense.
Selective Hearing
When looking at 2013’s third quarter, Sacramento residents racked up $344 million in retail credit card debt, up 6.5 percent from this time last year. In comparison, “regular” bank credit card debt is hovering around $3.99 billion for residents, which is down .5 percent from last year. However, experts aren’t surprised since the use and debt load of retail debt is up around the nation—but Sacramento residents seem to especially love their shopping.
Equifax president Trey Loughran says, “Consumers may be opting for retail credit cards because of the promotions, discounts and other perks they get at the register.” Of course, the holiday season is also full speed ahead, and that’s always a dangerous time to head to the mall. However, Equifax analysts also say that maybe Sacramento consumers are getting savvier with their choices, perhaps compartmentalizing purchases and consciously paying larger retail purchases to save their bank credit cards for emergencies or routine bills like groceries.
It’s Not All Bad
If a person is making good choices, even retail credit cards can fit into personal finances. For example, with a low interest rate and large payments made each month (or, ideally, paying off the balance in full), some retail cards do offer great perks. Trouble brews when a person depends on a retail card to make a purchase they don’t need, can’t afford and end up paying more than the sticker price with interest.
According to Loughran, the key is in being realistic and sticking to a budget—even during the holidays. Snagging a 10 percent discount by opening a retail card to purchase a TV is great savings—assuming the TV was going to be purchased anyway and the card is paid off within a month. Shopping smart is more than just bargain hunting.
Article Source: http://www.articlesbase.com/personal-finance-articles/equifax-reports-sacramento-residents-are-racking-up-retail-debt-6834420.html
About the Author
Jillynn Stevens, Ph.D., MSW is a writer and author. She recommends obtaining profesionnal assistance to help resolve credit problems from a someone like Princeton Law Firm, with help for folks across America.