Saturday, October 21st, 2017

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May Sees Consumers Concentrating Further on Trying to Get Out of Debt

Trying to <a href=get out of debt may have been easier for some consumers recently.” align=”right”>Debt is a problem that may saddle many young people, especially those who have just graduated from college.

On average, graduates in 2008 had $4,100 in debt on credit cards, according to a survey from Sallie Mae. That’s up from the $2,900 seen four years before.

Furthermore, the recession may have made it more difficult for people to get out of debt, as job losses and tight budgets may have caused them to rely on credit cards or fall behind on mortgages. However, a recent report from Experian and Standard & Poor’s shows that people are starting to get a handle on what they owe.

The two firms said that May saw defaults on credit cards and mortgage loans drop. The former saw 8.9 percent of accounts facing charge offs, while first mortgages faced a failure percentage of 3.4 percent.

David Blitzer, managing director and chairman of the Index Committee that put out the report, said the findings show that people have increased their efforts to get out of debt.

"This is part of what may be a long term process of re-establishing consumer financial stability," Blitzer said.ADNFCR-3389-ID-19845230-ADNFCR

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