Keeping up a social status has often been referred to as “keeping up with the Joneses”. This is the thing that most often causes spurts of buying with iPhones, flat screen TVs, riding lawnmowers and many other things. The Joneses are more concerned about getting rid of debt rather than spending on their credit cards.
Fed says debt in the home is going down
The Federal Reserve gave out a new report. The report shows all of the numbers for household debt in America. It seems that once the recession came, people decided to tighten their belts and pay things off. (A little debt consolidation never hurt anybody.). According to the Wall Street Journal, consumer debt levels have fallen for seven straight quarters. The peak in the third quarter of 2008 went down 6.5 percent in the 1st quarter of 2010, while the second quarter dropped 1.5 percent. $ 178 billion in debt was paid off in the last three months. Individuals are anxious to get the debt out the door. A cash until payday loan is given to those who do this.
A few caveats
There is more happening right now. The increased savings and falling debt in the household isn’t the only thing happening. Not only did consumer debt go down, the delinquency rate went down also. The delinquent debt rate went down. It went down about 0.5 percent. Unfortunately there’s one more thing to consider. Bankruptcy went up 34 percent. Pay day loans have been used less and less. 161 million paycheck loans accounts were opened while 272 million accounts were canceled. Credit card companies aren’t doing all that well. They might need their own emergency cash loans.
Cutting debt out of your life
Debt is something Americans are avoiding. They are also trying to get rid of what they have. More individuals are trying to pay credit cards off than get new ones. Regrettably, there are individuals still doing poorly. Bankruptcy is happening more often. Still, there are a lot of good signs that people want to stay out of debt, preferring the security of cold, hard, cash.
Wall Street Journal
blogs.wsj.com/economics/2010/08/17/ny-fed-households-continue-to-reduce-debt/
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