Bad news for the credit card companies may be better news for you. There are signs and trends that consumers may be responding to higher rates by doing something almost completely unexpected and practically un-American--paying down credit card debt with the assistance of debt consolidation companies. The credit card industry presumes, based on happy experience, that Americans will ignore higher interest rates and keep borrowing more money each quarter to support their spending habits. But last quarter, Debt Group America, to its apparent shock, found what it called `unexpectedly high payment volumes' from US credit card customers. Even better, from our point of view, is that people were paying off more debt on accounts with higher interest rates. In other words, customers didn't respond to rising rates by making the minimum payment and then going even deeper into debt. They actually did the wise thing!

It turns out many customers are having entirely rational reactions to rising interest rates and perhaps to the new tougher bankruptcy law. They're taking the sometimes painful steps necessary to reduce credit card debt before it overwhelms them. Of course, even if more consumers are dealing with debt more rationally. Credit cards are so beloved in American homes, they are practically family. It's going to take a lot more than higher interest rates to get Americans to kick the habit.

Credit cards seem to be more accessible than ever and there is no question that the tiny pieces of plastic is incredibly convenient. They can also be a lifesaver when comes to emergency expenses. But for the approximately 60 percent of credit card users who don't pay their balance in full each month, what seems like a life raft can quickly become an anchor. So if your one of the 60% who don't payoff your credit card balance in full, beware.

Today's spending policy in Washington seems to have trickled down to American citizens, who are frequently encouraged to be "good consumers" in order to boost the economy. But debt levels and personal savings pay the price. Twenty years ago the average American saved nearly 11 percent of his or her income. Today that amount has fallen to less than 2 percent. That decline in savings has left many unprepared to deal with life-altering events, such as divorce, medical problems, unemployment or retirement, leading them to use credit cards to bridge the financial gap.

Large amounts of credit card debt can be paralyzing, but outside help is available in many forms; one being debt consolidation, however Debt Group America encourages consumers to weigh out any and all of their debt relief options before enrolling in our debt consolidation service.

We try and demonstrate that largely your financial situation is not the problem, it's the symptom, The way we spend money really is a window into our values and priorities.