Despite the economic downturn of the past few years, consumer-spending has stayed steady, largely fueled by low interest rates that have made it easy to finance new cars, furniture, and other consumer goods. As a result, consumer debt, and in particular credit card debt, has increased dramatically. From 2000 to 2004, the average household credit card balance rose from $7,842 to $9,342, an 18.75% increase.
As consumer debt has shot up, so has the number of people staggering under their debt load. More and more Americans have learned the hard way that once your credit becomes blemished, you are caught in a vicious cycle. The more you need credit to make ends meet, the more difficult it is to get that credit, and the more you pay for it.
Once your credit score heads south, it takes time, patience, and financial discipline to restore it. The good news is that there are many things you can do to create immediate results and positively affect your credit score. Educating yourself about how to let credit work for you and not against you is the first step. Read through the articles in this section to increase your financial IQ and become a savvy credit user.
