bank rates

Are You Taking On More Debt?

Poll QuestionWhen it comes to accumulating debt, it appears Americans haven’t learned from past mistakes.

Consumer debt stands at $11.52 trillion, according to new data from the Federal Reserve Bank of New York. In the fourth quarter of 2013, it increased $241 billion, or 2.1% – the largest quarter-to-quarter increase since the third quarter of 2007.

We all remember what happened just after that, right?

Surely, we’re not the only ones who find these numbers troubling. Poll after poll has shown that Americans are hardly back on their feet from the recession, so not exactly in the best position for taking on debt.

Bankrate.com recently found that only 51% of Americans have more emergency savings than credit card debt, the lowest percentage since 2011. More than a quarter of respondents to the survey reported having more credit card debt than emergency savings.

That group was predominately comprised of people between ages 30 and 64, a big group that includes those in their prime earning years.

Bankrate.com’s chief financial analyst, Greg McBride, points to stagnant incomes, long-term unemployment and high household expenses for “hampering the financial progress of many Americans.”

Whatever the reason, let’s hope that people put the brakes on this troubling debt trend, before it becomes a major issue.

Again.

It’s not that we expected people to wash tinfoil and plastic bags for the next 50 years, but we had hoped some measure of frugality would be maintained post-recession.

n

n

n

How's your debt?
View Results

Don't miss out on the next bank deal. Get the newest deals delivered straight to your inbox!

Comments (1)
1 Star2 Stars3 Stars4 Stars5 Stars (4 votes, average: 5.00 out of 5)
Loading...
One Existing Comment
  1. Jake said:
    on March 3rd at 06:15 am

    People are taking on more debt because they cannot keep up with the continuing man made rise in inflation!
    The system is going to implode soon!
    Get out of the stock market now because it’s going to crash this year!
    You can take that to the bank!