U.S. consumers are spending more every month, and the average household debt is increasing as a result. According to a Federal Reserve Bank of New York report, consumer debt in the U.S. increased during the past three months by the greatest margin recorded in more than six years. Much of the spending was based around large-ticket expenses, such as homes, cars and education bills.
Household debt increased by more than 2 percent during the quarter, according to the report, representing a shift of $241 billion that brings overall debt to $11.52 trillion. "This quarter is the first time since before the Great Recession that household debt has increased over its year-ago levels suggesting that after a long period of deleveraging, households are borrowing again," said Wilbert van der Klaauw, senior vice president and economist at the firm.
Many have interpreted the findings, noting that they suggest a continuing economic recovery. For example, Tim Duy, a professor at the University of Oregon and a former U.S. Treasury economist, told Bloomberg that the findings point directly to financial recovery. "Signs that consumers are starting to releverage again and take on more debt is consistent with the idea that we're turning a corner on the recovery," Duy told the news outlet. "[The rise in debt is] consistent with the improvement in the housing market we've seen. Sooner or later, that was going to translate into higher levels of mortgage debt."
CNBC also published an analysis of the findings, noting that younger age groups may be driving the borrowing increase. Younger demographics spurred balance increases for almost every loan tracked by the Federal Reserve Bank, according to that report. That's unsurprising in light of the fact that student debts were among the fastest growing borrowing sectors. Student loan debt increased by the most among tracked categories from the fourth quarter of 2012 through the end of 2013, having ballooned by $114 billion to a total of more than $1 trillion in consumer debt. Education borrowing rode by $53 billion alone during the last quarter of 2013.
Personal Loans for bad credit can help to offset mounting debt
American consumers, surged on by a renewed economic confidence, are clearly spending more on high-cost items than they had during past years. However, some consumers will no doubt spend beyond their means - and that could leave individuals very cash-poor. When you need a quick cash advance to put some more money in your wallet, you can turn to the alternative lenders at CASH 1.
For employed individuals who have outspent their means and need a short-term or long-term solution, the loans offered by our team can be ideal. To obtain Personal Loans for people with bad credit in Nevada, Arizona or Texas, you only need to present us with a few documents.
A government issued ID is required and you must be able to show proof of a monthly income to ensure you will be able to repay the loan.
A paystub or your banking records will allow us to determine the dollar amount we can lend you. You'll also need to provide at least 2 personal references and, depending your type of loan, you'll need either an open checking account or a direct deposit card.
Before you consider applying for a Personal Loan, you should know that you must be at least 18 years of age and that you cannot be on active duty in the military.
Our Personal Loans for bad credit requirements do vary from state to state, but as a general rule you'll need to have what's listed above to speed up your application process.