Credit cards: avoid them. . . .

As my credit debt inched above $300 recently due to a plane ticket purchase (for a trip to see family later this summer), it appears that more Americans are falling behind in paying their credit card bills.

The percentage of Americans who are delinquent is now 1.3% (which seems low to me, to be entirely honest), but that is up 11% over the previous quarter. Analysts think this might be because people are using whatever tax refund/rebate they've received to pay for everyday costs, like food and gas. Meaning, I suppose, that there's no money left to pay the credit card bills!

I can't tell you how thankful I am that my credit debt is almost nil. Even at $300, I'm trying to find ways to pay it down quicker while not decreasing my savings much. Not having a huge bill hanging over my head when I know my income will decrease later in the summer is a huge incentive NOT to use my credit card except when necessary.

I can't imagine the desperation that some people must be feeling in this (still) horrible economy, with unemployment still rising in some places, and gas prices going up as well. I vow never to put myself in such a precarious financial situation again simply for my own sanity.