Are Americans Getting Smarter About Debt?
February 3rd, 2010 | by Admin |When looking at some recent financial data, it appears that more Americans are shunning debt.
Credit Card Debt Declines
Outstanding consumer debt has fallen over the past year, most recently at $1.59 trillion in November, according to data from the Federal Reserve. Revolving debt, which is mostly credit card debt, was $874 billion.
Personal Savings Rate
The declining numbers do indicate that some people are embracing the trend that it’s hip to be frugal and are paying off debt. The personal savings rate was at 4.5% in November, according to the latest figures from the Bureau of Economic Analysis (BEA). It was near zero before the economic crisis.
But a recent article at TheStreet.com makes the point that the lower overall debt level is probably due in part to credit card debt and other loans being written off, bankruptcies, and loan forgiveness programs. The article concludes that many Americans really haven’t learned their lesson about taking on too much debt.
Debt Reduction Strategies
The fact is that consumer debt levels have dropped, and there are ample opportunities to get help with debt to improve your finances.
So what can you do to dig your way out of a financial mess?
- Negotiate a debt settlement with your creditors
- Get debt help from a reputable debt counseling firm
- Consolidate credit card debt to lower the amount of interest paid out
- Stop buying stuff you don’t need and can’t afford
Credit Debt Relief
In the end it doesn’t matter what other people are doing. It’s up to you to secure your own financial future, and dumping debt and boosting savings can help you do that.
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- Debt Management: Prioritizing Credit Card Debt
- Debt Management: Three Questions for Conquering Debt
- You May Need a Third Party to Get Consumer C
- 5 Things to Remember About Debt Management
- False sense of security for consumers being asked for minimum repayments on credit cards
