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

Invoiceware International Expands SAP Hybrid Cloud Service to Support Peru SUNAT

An important aspect of accounts receivable management (ARM) and the automation of all financial trnasactions of account management is e-invoicing. This is not just a challenge in developed countries but is global and touches a host of vertical markets. An illustration is the announcement by Invoiceware International, a leading provider in Latin America of electronic invoicing and fiscal reporting solutions, that it is expanding to support companies required by Peru's tax authority to rollout ele… [ Read More ]
02/25/2015

New York State Senate Bill to make it Illegal for Debt Collectors and Creditors to Use Social Media for Collections

I you are like me and saw a version of the headline above, you wanted to learn more. And, while the introduction in the New York State Senate of Bill 3803 has only its sponsor Senator Kevin Parker (D-Brooklyn) on it thus far and has gone to the Senate's Consumer Protection Committee where it faces an uncertain future to say the least, the consequences of this should it gain traction are enormous. [ Read More ]
02/24/2015

Top Image Solutions and Hanse Orge Partner to Extend Accounts Receivable Automation

Top Image Solutions and Hanse Orge have joined forces to create ARM solutions for ERP environments including SAP. [ Read More ]
02/18/2015

Noble Systems to Provide Contact Center Software for Gulf Coast Collection Bureau

Noble Systems is working with the Gulf Coast Collection Bureau on an accounts receivable management solution for healthcare providers. [ Read More ]
02/18/2015

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!