Small businesses pull out the plastic
It’s not just American households getting in over their heads with credit card debt. A report from the Small Business Administration says the number of small businesses carrying credit card debt jumped 25% in just one year.
The total amount of debt incurred doesn’t add up to much, less than a 2% increase. But the head of a group called SCORE — Counselors to America’s Small Business tells the McClatchy Newspapers that the only time small businesses should be resorting to credit card debt is to keep up cash flow, and only when bank accounts are exhausted and borrowing from family and friends is not an option. So even a small increase in the dollar amount of debt is an ominous sign.