Americans Set To Get Out Of Debt

[Jan 11, 2010.]

 

Credit Card Debt Statistics

The most recent Federal Reserve Statistical Release for Consumer Credit was published January 8, 2009. This release surprised economists. Most economists were expecting a decline in credit balances (both revolving and not revolving) of about $5 billion. The November numbers came it at an over $17.5 billion decline or more than three times expectations. Americans reduced their revolving credit card balances 18.5% from October to November or $13.7 billion. These statistics prove that Americans are seriously trying to get out of debt.

Debt Relief Trends

From 2004 until Q3 of 2008, Americans were steadily increasing their credit card debt from month to month. Beginning in Q4 of 2008, that trend turned around. The American culture was saturated with debt, both credit card debt and mortgage debt. Almost at once, and certainly triggered by a number of factors, the American public started to reduce debt. It was in great part related to the housing market, but even those who don't own their home are spending less and trying to get out of debt.

Ramifications On The Economy

Ultimately, a country that uses less credit and saves more money should be financially healthy. It will be a big adjustment and a big change from the previous American economic culture. At one point over 70% of the GDP growth was driven by consumer spending. Consumers are using many of their resources to reduce debt, which has an affect on consumer spending. Consumer spending is dramatically lower than in the past. This in part caused the recession and is in part hindering a robust recovery. The government has had to take extreme measures to keep the economy from complete collapse.

Find A Debt Consolidation Program

You may be thinking that you'd also like to get out of debt and start saving money instead of loosing it all on high interest credit cards. It is a new year, and a good time to start. You will need some expert advice, a good plan, and self-discipline. It is very hard to make this kind of life change alone. Seeking a debt consolidation program supervised by a debt relief specialist will offer you the accountability you need to succeed. There is no time like the present. Get started today.

 

About Author:

Renee Morgan has been a loan officer for over eighteen years. She is also a freelance writer and guest expert for radio and TV.