While many consumers made efforts to reduce debt during and after the recent recession, some have been tempted to start borrowing on credit cards again, and experts believe this may be leading to significant financial difficulties for some.
The final quarter of 2011 saw an increase in the amount of credit risk consumers faced, and much of that was the result of borrowers falling behind on their mortgage payments, according to a report from Your Money Matters. Some experts believe this is a consequence of subprime borrowers once again having access to credit cards that they had been locked out of in the past, as lenders have made an effort to extend credit to riskier consumers once again.
As a result, many may see credit cards as something they cannot afford to miss out on again, and are therefore prioritizing their card payments ahead of their mortgages, the report said.
Consumers have generally been very good about making efforts to cut their credit card debt since the recession, and all of the nation's top lenders have seen delinquencies and defaults plunge as a result.