Apparently not content to follow the laws of supply and demand, American consumers have taken on higher levels of credit card debt in February. This 5.9 percent rise in credit card debt levels means that the amount of goods being mortgaged for the future increased, meaning that the inflated prices are not functions of real supply and demand. In other words, businesses can afford to raise prices despite a downturn because Joe Q. Shopper uses his plastic wand to bridge the difference in his level of spending and growth in income.
Of course, this tradeoff is a Faustian bargain, as credit card debt is not all kind and fuzzy like the commercials tell you. Even if you pay your bills on time every month you can still be hit with fees and service charges, and if you are ever late you can feel the kind fist of 29.9% APR and more. Including fees and trailing interest, credit cards can be hitting you with 50% and higher real interest rates. Don't follow the guidance of the invisible boot though, you need those $500 pairs of sunglasses and $6 lattes more.
Of course, this tradeoff is a Faustian bargain, as credit card debt is not all kind and fuzzy like the commercials tell you. Even if you pay your bills on time every month you can still be hit with fees and service charges, and if you are ever late you can feel the kind fist of 29.9% APR and more. Including fees and trailing interest, credit cards can be hitting you with 50% and higher real interest rates. Don't follow the guidance of the invisible boot though, you need those $500 pairs of sunglasses and $6 lattes more.
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