With the new year just starting a few days ago, some are wanting answers to what the economy will start to look like in 2011.
While the economy is slowly starting to rebuild itself and the unemployment rate is starting to drop, it is normal for many who are still not out of hot water and still have massive credit card and loan debt to be looking for debt relief and consolidation options.
As of now the average amount of consumer debt has dropped, with many pointing to a lack of funds for many to actually go out and buy items. Sources also point to consumers’ attitudes changing and that many don’t want to part with their hard-earned money. Stricter lending practices could also be part of the reason for less overall debt as many more are no longer qualifying for loans.
However, if looking just at people’s spending habits this holiday season, sources claim that many think it’s still OK to borrow money to pay for other items, which could have increased some overall debt for some consumers.
When looking to the future it’s also important to look at where the country is coming from. Right now, while lower than when at its highest, the unemployment rate is still around 10 percent, but is still not at its highest when it leveled around 20 percent for four years during the Great Depression.
While this is good news and many people are starting to decrease their individual debt, there are still many people who are struggling and don’t need to be. With debt relief there are many different options ranging from Chapter 7 to Chapter 13 bankruptcy, to attempting to qualify for a loan modification. It’s important that before dipping further into 401K savings, or continuing to use credit cards and get more in debt, that a consumer learns all the options that are available to them.
Source: Richmond Times-Dispatch, “Economic Impact – Will consumer debt grow?” 3 Jan 2011