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Start with the positive news. Since the financial crisis, Americans have lowered their total mortgage debt by $1.5 trillion! Given how expensive housing is, the decrease from prior years is remarkable. The bad news is that consumer debt, which includes credit card debt and home loans, climbed for the third consecutive month. That implies that although debt has decreased since 2008, it now appears to be increasing once more. It could be advantageous if borrowers can buy homes once more. However, the credit card debt can be cause for alarm. We can all only hope that customers don’t overextend themselves with loans, even as rising consumer confidence is a sign that the economy is getting better.
These statistics were taken directly from an Equifax study that included data from a variety of polls and sources.
They include both year-end figures and fourth quarter data.
Collections & Credit Risk distilled the data into the “need to know” items, such as the proportion of past-due debt, the total amount of past-due debt across all categories, and comparisons to earlier quarters of the year.
In conclusion?
It appears that we are, on average, growing, prospering, and/or adding to our consumer debt at the same time.
It frequently appears in quarterly reports, which is a well-known trend.
This is primarily because of the extensive consumer data that is highlighted, as well as the simple reality that debt is intricate and unique.
Positive news in one area does not always imply positive news in other areas.
scores
One in 10 Americans has at least one debit card and one in four has at least one credit card, according to a new study from Equifax.
The study found that Americans are increasingly using credit cards to pay down debt, with the average credit card debt per household increasing from $5,700 in 2015 to $6,200 in 2016.
The study also found that the average credit score has remained relatively unchanged over the past year, with the average score hovering around 700.
Ready to pay off debt faster?
If you’re looking to get out of debt faster, you’re not alone. According to Equifax’s National Consumer Credit Trends Report, more and more Americans are jumping from one debt to another. The report found that the number of consumers with multiple debts has increased significantly over the past few years. In fact, the number of consumers with three or more debts has increased by nearly 50%. While some of this debt may be due to necessary expenses, such as a mortgage or car payment, a large portion is likely due to credit card debt. And with interest rates on credit cards still near record highs, it’s no wonder that consumers are struggling to get out of debt.
If you’re looking to pay off your debt faster, there are a few things you can do.
First, make a budget and stick to it.
This will help you see where your money is going and where you can cut back.
Second, create a debt payment plan.
This will help you focus on paying off your debts one at a time.
Third, consider consolidating your debts.
This can help you get a lower interest rate and make one monthly payment instead of several.
Whatever you do, don’t give up.
Paying off debt is a difficult process, but it’s not impossible.
With a little bit of planning and some determination, you can get out of debt and start fresh.
What this means for you
It’s wise to treat the information provided in these reports with scepticism. Despite the fact that the average debt in any of the surveyed regions may be rising or falling (depending on a number of contributing variables), your financial situation may not necessarily follow the trends. For instance, you could have just bought a house and now have a mortgage. Or perhaps you just finished paying off a retail credit card. The best general response to these averages is to use them as a reminder to review your finances and revise your payback strategy.
Actions to take
If you find yourself in debt, there are a few things you can do to help improve your financial situation. One option is to consolidate your debt into one monthly payment. This can help you better manage your finances and avoid late fees and penalties. Another option is to work with a credit counseling service to develop a plan to pay off your debt. This can be a good option if you are struggling to make ends meet. Finally, you can consider filing for bankruptcy. This option should be considered a last resort, as it can have a negative impact on your credit score.
