| Economics: Total Consumer Debt |
Total consumer debt, both revolving (i.e. Credit Cards) and non-revolving (Automobiles, Homes, Education Debt).
Trends in Consumer Debt
Published Friday, October 24th, 2008
As reported by Time Magazine, the nation’s consumers are hedging their wallets and so are the lenders. The recent figures are coming from all sectors of banking and retail. The over use of leverage, the use of a small amount of assets to control a greater amount of assets, is well over. Creditors are reducing credit limits in an effort to deleverage the credit available both to consumers and investments.
Given the new data released by the Federal Reserve, the total consumer debt has risen $94.102 Billion from August 2007 to August 2008 to the amount of $2.577 Trillion. The rate of delinquency on that debt has been relatively steady since 1994 with a spike at 2.75% between 1999 to 2004, the current rate exceeds that spike at 3.31%. Further difficulties lie in the Charge-Off Rate which has followed the spikes and dips of the delinquency rate and has reported to be currently at 1.24% of all Debt.
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U.S. Federal Reserve: Consumer Information - https://www.federalreserve.gov/
Information regarding consumer credit
U.S. Federal Reserve: Consumer Help - https://www.federalreserve.gov/consumerinfo/default.htm
Information regarding consumer credit ratings, personal banking and wealth building.