Americans Taking Out More Loans, Scared of Credit - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Americans Taking Out More Loans, Scared of Credit

Americans Taking Out More Loans, Scared of Credit

Americans Taking Out More Loans, Scared of Credit
The content is accurate at the time of publication and is subject to change.

It seems that despite a worrisome economy, Americans are spending at high levels more and more these days. So high in fact that total consumer loans raised by $7.4 billion this past September, according to the Federal Reserve`s most recent report.

This report documented that American`s are more often borrowing money for things like college or automobiles. These two types of purchases are ever increasingly popular as many Americans chose to take out loans to educate themselves to increase their competitive edge in the work force. This documents that Americans are growing more cautious of taking on debt through things like credit cards, however, as they are showing less usage of that. Those who have credit cards are decreasing the frequency of their usage as well. The use of credit cards to make purchases has dropped drastically by nearly 19% since September of 2008 at the absolute height of the fiscal crisis.

Not long ago several expert economists were concerned that the state of the economy put Americans at risk of falling back into another recession. But now the economy has shown some growth at an annual rate of 2.5 percent in the July through September period of time. Does this mean America might be on its way to more substantial fiscal recovery? Perhaps, but it’s too early to tell where our economic climate is headed right now.

Earlier this month the government stated that the jobless rate dropped to 9% in our country in October, from 9.1% where it had been stagnant for several months. This was because our country added approximately 80,000 new jobs. Despite signs of improvements, without more aggressive job increases and higher paying positions becoming available many American consumers may be have to cut back on their spending habits. This cut back on spending habits could slow down the economic growth of our nation. After all, nearly 70% of financial activity comes from American consumer spending. This recent Federal Reserve report does not include mortgages, home equity loans or any other loans tied to real estate investments. The Federal Reserve report solely covers student loans and automobile loans, two major buying areas for American consumers.

Perhaps the best thing to do is to remain optimistic. It`s also important that we educate our younger populations who are taking out credit cards about the proper management of their debt. Credit cards after all are a very important and useful tool towards Americans building things like credit and feeding the economy. We need to educate each other on basic fiscal survival skills. If our spending habits increase then we need to be responsible for the consequences. It`s about time we took it upon ourselves to help the economy recover slowly but surely.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Capital One Partners Up With Airlines

Posted: December 12, 2018

Capital One has partnered up with 14 airlines so that Venture and Spark cardholders can now use miles to pay for their flights. What is the transfer ratio? All of the carriers that have partnered up with Capital One, except for Emirates ... Continue reading
Holiday Shopping is Trending

Posted: December 11, 2018

Shopping is definitely in style this holiday season with consumers, according to the new TD Bank Holiday Retail Report, on average they will be spending $530 on gifts. What are the trending gift-giving categories this season? Gift cards ... Continue reading
Some Upgrades Coming for American Express Business Platinum Cardholders

Posted: December 10, 2018

In 2019 people with the Business Platinum Card will be able to take advantage of some upgrades arriving with the new year. These new benefits are designed to boost productivity, as well as give cardholders more perks when traveling for ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!