On behalf of Law Offices of Mark M. Kratter, LLC on December 08, 2011
Connecticut residents are gradually paying off their debt while showing an interest in spending more. In late November the New York Federal Reserve Bank said mortgage debt in the United States dropped from July to September. Consumer debt is 0.6 percent lower as compared to the second quarter, primarily due to a 1.3 percent drop in mortgage loan debt.
At the same time, requests for new credit card accounts over the last six months have increased. According to the chief economist at Commerzbank, this increase could be a positive indicator that consumers are returning to normal borrowing and spending patterns. However, over the last quarter the number of open credit card accounts actually fell, and credit card debt remains a problem.
But the Fed also indicated that job market instability and the scarcity of surplus cash have caused many consumers to scale back on spending. Also, delinquency rates for mortgages have been on the rise, and the creation of new mortgages has been the lowest since mid-2000.
Some of these figures may be positive for the economy. However, the current news reports don't predict if we are actually outdistancing the economic downturn with any kind of certainty. One economist said that sluggish growth is going to stick around for a while.
As it stands, many Connecticut residents continue to suffer under a mountain of debt. For those affected, the struggle is ongoing and some are not sure of which way to turn for help. But there are alternatives to dodging creditors' aggressive tactics, and debt relief is something that most individuals can receive. Those who do not seem able to get ahead may benefit from investigating the legal options available to confront their financial obligations, including the use of bankruptcy protection to pave the way for a fresh financial start.
Source: Reuters, "Consumers shed debt but desire to spend is seen," Mark Felsenthal, Nov. 28, 2011
