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Credit card debt increased in 2014, but that's not all bad news

 
Published Feb. 19, 2015

In another sign that we're gaining confidence in the economy and our ability to pay the bills, a new report shows we whipped out our credit cards more during last year's holiday season compared to the year before.

Tampa Bay shoppers' credit card debt increased 7.5 percent in December compared to the year before, to $6.4 billion. Nationwide, credit card debt increased nearly 6 percent, to $642 billion.

That's bad news, right?

Not really, according to Trey Loughran, president of Equifax Personal Information Solutions, which issued a report on the credit information this week.

"A rise in credit card debt indicates consumers are beginning to feel more confident about the economy and their personal finances," Loughran said in a statement. "During the recession, many consumers felt uncertain about their financial futures. Consumers responsibly accessing credit is a positive sign for a healthy U.S. economy."

Equifax noted that despite the increase in total debt, the percentage of our total credit limit used — a figure called utilization — increased by less than 1 percent compared to 2013. That figure also is down nearly 16 percent from its peak in early 2010.

"This suggests that consumers continue to show restraint in their credit card use," Equifax said in a statement.

Equifax, a credit monitoring and identity theft protection service, noted that each of the country's top 25 metro areas had an increase in credit card debt of at least 4 percent. In 2013, none of those markets had a 4 percent gain and some had decreases.

Houston (9.4 percent), Orlando (9.2 percent) and Miami (8.7 percent) had the highest increase in credit card use. Seattle, St. Louis and Cleveland each had increases of less than 5 percent.