It appears that many consumers are starting to borrow more, even though wages are staying the same. This means that while more spending may indicate an increase in economic confidence, there is still the chance that people will end up making purchases they cannot afford.

According to the Federal Reserve, for the fourth quarter of 2011 consumer debt increased from 19.3 billion to $2.5 trillion. Within that spending, credit card debt rose by 4.5 percent, and non-credit card debt, like that from auto loans, topped out at $1.697 billion.

Overall, auto sales were at an all time high -- with the exception of the "cash for clunkers" program -- since May 2008.

However, despite the increase in consumer debt, the nation's economic situation doesn't seem to match the increase in spending. In fact, the gross domestic product rate only grew 2.8 percent during the last three months of the year.

As of now, consumers are keeping up with making payments on these new purchases on time, with credit card write-offs down from the previous year. However, with wages continuing to remain stagnant, there is a chance that some consumers may end up facings serious financial difficulties.

If there is an increase in credit card debt, and other debts, without more of an economic rebound, this in turn could end up leading to more people needing to file for a personal bankruptcy. However, while struggling to pay bills is a very common reason to seek bankruptcy protection, the entire process can still be rather confusing, and it's a good idea to have proper legal representation when seeking debt relief.

Source: CBS Money Watch, "Consumer debt skyrocketed in 4th quarter," Constantine von Hoffman, Feb. 8, 2012