Watch out for the debt collector on your credit card

The Reserve Bank is saying that consumers spent over $20 billion on credit and charge cards over the Christmas period and the average credit card account now stands at $3,196. Some key debt collection agencies are reporting higher than ever levels of credit card debts and the call on them to chase debts which are mounting from a Christmas spending binge, back to school and back to business expenses. January is when household debt levels reach their maximum. Debt collection agencies are reporting an 25 percent jump in referrals recently as businesses crack down on customers putting them under cash flow pressure. The groups with the highest debt levels were young adults or families with children. There was an unexpected jump in the use of credit cards to pay consumer expenses in the young adult group. Its time to be careful with your cash and get back to work. Also make sure that you recover any debt owing to you so that you can afford to pay your own bills.