San Mateo, Calif. (PRWEB) January 25, 2012
At the end of 2011, with consumer confidence higher and unemployment down, consumers opened their wallets and spent during November and December ? a trend that could indicate a worrisome direction for consumer debt, according to the Freedom Debt Relief Quarterly Comment on consumer debt and credit issues.
Recent data from the Federal Reserve Board indicates that consumers went deeper into debt for both revolving and nonrevolving credit accounts in November 2011. Other statistics show that holiday retail spending in December was at least 4.7 percent higher than the same period in 2010.
?When spending and debt increase, but income stays the same or declines, it?s a problem for any budget,? said Kevin Gallegos, vice president of Phoenix operations for FDR. ?After the strain of several years of economic struggle, seeing revolving debt increase can mean people are giving in to the temptation or the need to rely upon credit to meet their household needs. When total debt begins to climb, we become concerned that those charges are not being paid off and could result in financial trauma for many Americans.?
The latest Federal Reserve statistics show that total consumer debt increased consistently during 2011, rising by 2.3 percent from the first quarter to the last. While that percentage might seem small, Gallegos noted, the total amount consumers owe has gone up by more than $ 56 billion since Q1 2011. To put that figure into perspective, it equates to every American age 18 and up owing $ 240 more than they did last January.
Recent financial data as reported:
1.
Freedom Debt Relief Quarterly Comment: Spending, Debt Shot Up Prior to Holidays
San Mateo, Calif. (PRWEB) January 25, 2012
At the end of 2011, with consumer confidence higher and unemployment down, consumers opened their wallets and spent during November and December ? a trend that could indicate a worrisome direction for consumer debt, according to the Freedom Debt Relief Quarterly Comment on consumer debt and credit issues.
Recent data from the Federal Reserve Board indicates that consumers went deeper into debt for both revolving and nonrevolving credit accounts in November 2011. Other statistics show that holiday retail spending in December was at least 4.7 percent higher than the same period in 2010.
?When spending and debt increase, but income stays the same or declines, it?s a problem for any budget,? said Kevin Gallegos, vice president of Phoenix operations for FDR. ?After the strain of several years of economic struggle, seeing revolving debt increase can mean people are giving in to the temptation or the need to rely upon credit to meet their household needs. When total debt begins to climb, we become concerned that those charges are not being paid off and could result in financial trauma for many Americans.?
The latest Federal Reserve statistics show that total consumer debt increased consistently during 2011, rising by 2.3 percent from the first quarter to the last. While that percentage might seem small, Gallegos noted, the total amount consumers owe has gone up by more than $ 56 billion since Q1 2011. To put that figure into perspective, it equates to every American age 18 and up owing $ 240 more than they did last January.
Recent financial data as reported:
1.