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In a September 10th, 2012 Reuters’ online article it was reported that the consumer credit debt fell for the first time in nearly a year. Many experts believe that Americans are attempting to reduce their credit card use and debt while the economy remains rocky.
The consumer’s credit shrank remarkably in July, nearly lowering roughly $3.28 billion. The drop may be a result of the job market slowing down as well as the fear of another recession. Since coming out of the 2007-2009 recession the U.S. market has seen a steady increase of credit use among the public, with only a few minor decreases. However, in July, data showed that revolving credit, which includes credit card use as well as other types of credit lowered by roughly $4.80 billion.
Experts did say that obtaining completely accurate credit data can be difficult since it may be hard to interpret the reasons why the public have lowered their use. For example, a person may start to use their credit cards less if they are earning more money. Although overall credit card use may have declined the amount of funds the government lends to students increased roughly 24% in July. This increase may also reflect a reason why credit card use is lowering. Many students are reluctant to taking out additional loans especially while the debate in Congress over student loan interest rates continues.
For a free initial bankruptcy consultation, call the law offices of Jayson Lutzky, P.C. at (800) 660-5299. Mr. Lutzky has over 29 years of experience practicing law. Working with an experienced lawyer makes a difference. His office is bilingual, in English and Spanish. For more information, visit www.BankruptcyNYC.com