Accounts Receivable Management Featured Article

Consumer Debt Drops in Third Quarter of 2012

November 15, 2012

While economists scour the immense amount of data generated by economic indicators to see if the nation is finally on its way to recovery, they may have a new tool in their arsenal: consumer debt would appear to be dropping, albeit slowly.

Overall consumer debt levels fell $256 billion in the third quarter of 2012 versus the same period a year ago, according to new Credit Trends data released by Equifax on November 8, 2012. However, the 2.28 percent year-over-year decline is the slowest rate of decline since the second quarter of 2009, showing that some of the caution may be starting to lift.

Previous to this drop, consumer debt had been on the rise.

U.S. consumers currently owe $11 trillion across all types of debt, with mortgage debt accounting for a little more than three-quarters of that amount. Mortgage debt fell 3.4 percent in the third quarter, compared to the same period a year ago. 


Image via Shutterstock

Nonmortgage consumer debt actually increased 0.7 percent, according to ACA International.

While the average debt may be down nationwide, the news varies by region. Among the largest 25 metro areas, total consumer debt continued to decline in all but three markets versus the same time a year ago. In Houston-Galveston-Brazoria, debt climbed 1.37 percent.

In Pittsburgh, it increased 1.05 percent. And in Dallas-Fort Worth, debt grew 0.08 percent. The markets where debt declined at the fastest rates are also some of the areas hit hardest by the housing bust and the recession, says the ACA.

The largest declines in consumer debt were in the Las Vegas, Miami-Fort Lauderdale, Sacramento-Yolo and Phoenix-Mesa markets.

The falling debt may be attributed in part to debt levels for mortgages, which are falling all over the nation. By contrast, however, consumer debt levels for auto loans may be on the rise, indicating that as the nation emerges from recession, consumers are slowly starting to buy cars at a brisker rate, replacing older cars they held onto during the worst of the recession. 


Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.




Edited by Braden Becker

Article comments powered by Disqus

Related Accounts Receivable Management Articles

MRI Software Partners with Hunter Warfield

MRI Software, a company that offers property management software solutions, recently announced that Hunter Warfield, a revenue recovery agency for the multifamily industry, has joined MRI Partner Connect program. Hunter Warfield is the first MRI Partner in the debt collections industry. Being the newest member of MRI Partner Connect program, Hunter Warfield will be able to offer MRI's products and solutions to its clients. [ Read More ]
10/21/2014

CSG's Video Billing Initiative keeps Pace with Time Warner's Seasoned Customers

Whether it's an offshoot of wanting to genuinely enhance customer service or whether it's another gimmick to stay alive in a world of cut-throat competition, we'll never know, but no matter what it is, cable companies are coming out with new ways to increase customer loyalty and reduce service cost. Time Warner is going next-generation with its customer care and is now wooing customers with CSG's video billing initiative- SmartVideo. [ Read More ]
10/14/2014

Esker Energizes Direct Energie with Digitized Handling of Vendor Invoices

Document management solutions provider Esker helps DIrect Energie automate accounts payable. [ Read More ]
10/13/2014

Alta Vista Technology Enhances Its Portfolio with Intacct Cloud Financial Applications

Alta Vista Technology adds Intacct cloud-based financial system to its capabilities. [ Read More ]
10/13/2014
FREE Accounts Receivable Management enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!