Americans Using Credit Cards to Make Ends Meet

Times are rough, with Americans facing increasing costs of living while their incomes stay the same. In the past, families turned to their home equity when they needed a low-interest loan to make ends meet. But the mortgage crisis has taken that option away from many. How are consumers coping now? By turning to their credit cards.
Credit cards have become a necessity for daily purchases and bills. Interest rates aren’t typically as low as home equity rates, but the cards are widely available and convenient to use. Anyone in any credit situation can obtain a credit card, but the very best terms and rates will go to those with high credit scores. Nobody likes being in debt, but low-interest or 0% APR credit cards can be life-savers in tough financial times. Reward cards can also benefit consumers who charge purchases every day.
The economic stimulus packages, designed to help Americans contribute more money to the economy through spending, are mostly being put toward credit card debt. Credit cards are a safety buffer for consumers who want available funds in case of emergencies. They are paying down their debt so that they’ll have more available credit when they need it the most - the immediate future.