ADMA Solutions President Warns Holiday Spending May Affect Charge-Offs and Delinquencies
The recent improvement in charge-off rates and delinquencies could easily be offset by holiday spending, according to ADMA Solutions.
North Huntingdon, PA, December 08, 2010 --(PR.com)-- Amy Michalo-Rojas, president of ADMA Solutions, LLC, a Pennsylvania-based debt resolution company, is warning that holiday spending could negate improvements in credit card charge-offs and delinquency rates.
Credit card charge-off rates dropped last quarter, after reaching their highest level in at least 25 years. But if consumers rely on credit cards for their holiday spending, the increased debts could translate into higher charge-off rates and delinquencies in the near future.
The rates at which credit card companies write off uncollectible debts had reached 10.37 percent over the summer but dropped to 8.39 percent, which Michalo-Rojas said is an important but fragile improvement. Credit card delinquency rates also fell slightly from 5.05 percent to 4.63 percent, according to the Federal Reserve.
“Charge-off rates just reached their highest levels in decades,” she said. “While last quarter’s drop is an undeniable improvement, the holidays are an especially delicate time for both consumers and the economy.”
Michalo-Rojas is urging all consumers, especially those already in debt, to avoid credit card purchases and pay for all expenses in cash.
“Many people want to forget about financial realities during the holidays, but they get into trouble when the New Year bills start rolling in,” she said. “This is a tall order for many households, but avoiding additional debt is the best way to improve personal spending, and to help the economy in the long run.”
Over the past two years, the recession has made it difficult for consumers to stay financially afloat in the face of massive unemployment, underemployment, and the resulting dependence on credit to make ends meet. As a result, US banks have been forced to charge off large amounts of uncollectible debt that consumers could not afford to repay. Michalo-Rojas agrees with many economics experts who believe the economy is slowly improving, but she believes consumers must be especially careful. While the fall quarter’s numbers are a positive sign, she warns that the improvement may be temporary.
“Consumers need to be careful not to overspend this time of year, especially on credit cards,” she said.
Even though the economy and the retail market specifically depend on consumer spending to boost their numbers, consumers should rein in spending over the holidays and when planning to travel or entertain.
About ADMA Solutions, LLC
ADMA Solutions, LLC, is a debt resolution company providing credit card debt relief and debt settlement services to consumers who have significant financial or personal hardships. For more information call 1-888-499-ADMA (2362) or visit www.ADMADebt.com.
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Credit card charge-off rates dropped last quarter, after reaching their highest level in at least 25 years. But if consumers rely on credit cards for their holiday spending, the increased debts could translate into higher charge-off rates and delinquencies in the near future.
The rates at which credit card companies write off uncollectible debts had reached 10.37 percent over the summer but dropped to 8.39 percent, which Michalo-Rojas said is an important but fragile improvement. Credit card delinquency rates also fell slightly from 5.05 percent to 4.63 percent, according to the Federal Reserve.
“Charge-off rates just reached their highest levels in decades,” she said. “While last quarter’s drop is an undeniable improvement, the holidays are an especially delicate time for both consumers and the economy.”
Michalo-Rojas is urging all consumers, especially those already in debt, to avoid credit card purchases and pay for all expenses in cash.
“Many people want to forget about financial realities during the holidays, but they get into trouble when the New Year bills start rolling in,” she said. “This is a tall order for many households, but avoiding additional debt is the best way to improve personal spending, and to help the economy in the long run.”
Over the past two years, the recession has made it difficult for consumers to stay financially afloat in the face of massive unemployment, underemployment, and the resulting dependence on credit to make ends meet. As a result, US banks have been forced to charge off large amounts of uncollectible debt that consumers could not afford to repay. Michalo-Rojas agrees with many economics experts who believe the economy is slowly improving, but she believes consumers must be especially careful. While the fall quarter’s numbers are a positive sign, she warns that the improvement may be temporary.
“Consumers need to be careful not to overspend this time of year, especially on credit cards,” she said.
Even though the economy and the retail market specifically depend on consumer spending to boost their numbers, consumers should rein in spending over the holidays and when planning to travel or entertain.
About ADMA Solutions, LLC
ADMA Solutions, LLC, is a debt resolution company providing credit card debt relief and debt settlement services to consumers who have significant financial or personal hardships. For more information call 1-888-499-ADMA (2362) or visit www.ADMADebt.com.
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Contact
ADMA Solutions, LLC
Amy Michalo-Rojas
1-888-499-2362
www.admadebt.com/
help@ADMADebt.com
Amy Michalo-Rojas
1-888-499-2362
www.admadebt.com/
help@ADMADebt.com
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