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

EGS to Sell Part of Accounts Receivable Management to Platinum Equity

To increase focus on its core business segments and services, Expert Global Solutions (EGS) is selling certain segments of its Accounts Receivable Management (ARM) business to Platinum Equity, a Los Angeles-based private equity firm specializing in business operations. The dollar value of the transaction has not been disclosed yet. The sale of Transworld Systems, Inc. will include Transworld Systems, Education, Attorney Network, Healthcare Bad Debt, Government and U.S.-based Third Party Collecti… [ Read More ]
07/17/2014

e2b Teknologies Wins New Customer for its Anytime Collect Solution

e2b teknologies, publishers of Anytime Collect accounts receivable management software, has recently won a new customer for its Anytime Collect for automated QuickBooks accounts receivable management. The name of the company has not been disclosed. [ Read More ]
07/17/2014

Protiviti: Internal Auditors- Be Relevant

Internal audit has undergone much change over the years and it doesn't appear that that trend is going to vary. Protiviti, a global business consulting and internal audit firm, has just released its tenth anniversary edition of internal auditing to help internal auditors come to grips with the changing scenario. [ Read More ]
07/09/2014

C2C Resources Promotes Accounts Receivable Automation Process

Atlanta-based accounts receivable solutions provider, C2C Resources is involved in collecting commercial debt on behalf of their over 20,000 clients and is considered one of the top agencies in the country. The company's portfolio includes solutions like Profit Maximizer, InfoMax Collection System, and Legal Forwarding Edge, which can help companies to be more effective with their own in-house collecting and maximize recovery of accounts turned over for collection. [ Read More ]
07/09/2014
FREE Accounts Receivable Management enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!


Weekly Live Demo
CaaS Small Center

Register Today!